As today’s digital revolution unfolds, US freight railroads must keep pace to support technological innovation, economic growth, and the demands of a global transportation system — just as they did during the industrial revolution. Then, the steam engine revolutionized transportation. Now, data analytics is the game-changing engine that can drive advances in the global logistics industry.
The explosion of online retailing is up-ending business models for how products are purchased, shipped, warehoused, and delivered. Consumer expectations of next day – even same day – delivery are the new norm. This exerts intense pressure on overnight delivery companies and freight carriers across modes to either adapt or risk irrelevance. To remain not just relevant, but vital, freight railroads must be part of the solution.
From equipment health, to product tracking, to extending the planning horizon, railroads are identifying, inspecting, and modeling big data to boost operational efficiencies and customer service. Remote monitoring systems, for example, let us track locomotive engine performance and conduct preventive maintenance to avoid breakdowns and delays. Predictive analytics allow us to precisely gauge the movement of rail shipments, shrinking the time between origination and destination, and optimizing scheduling across a network. Online portals allow shippers to track their products and materials in near real-time, get service alerts, and gain seamless assistance across all railroad departments with which they interact.
Overall, we need to continue to move toward integrated and robust data streams, where railroads gain more granular views of our respective systems. Next, we need to more holistically integrate data exchanges with other carriers, giving shared customers access to real-time tracking data as their products move over rails, roads, sea, and air. It’s an exciting time to be in railroading. Data-driven advances will create a better tomorrow for us, our customers, and their customers, bringing the global community even closer.