$15B
Annual revenue
A Global Energy Producer Optimizes Rail Operations with Lean Practices: Scaling Lean Practices and Digital Visibility Across a Global Energy Producer’s Rail Network
Industry: Oil & Gas, Sustainable Energy
Industry: Transportation, Logistics and Services
Service: Digital & Ai
Service: Manufacturing
Service: Operations Strategy and Transformation
Service: Supply Chain
Our Client
A global energy producer with $15 billion in annual revenue operating 12 North American sites and managing over 4,000 railcars across multiple storage yards.
12
North American sites
+4K
Railcars managed
The Challenge
Despite strong corporate rail expertise, the client faced operational challenges and limited visibility at refinery sites, hindering efficiency and cost optimization.
- Limited visibility: Minimal performance tracking for daily rail and logistics operations.
- Disjointed planning: Switching and load plans lacked alignment and clear priorities.
- Misaligned goals: Operational focus on PSR over customer service.
- Operational inefficiency: Ineffective loading and switching constrained throughput.
- Congestion costs: Railyard congestion and space limitations increased demurrage and storage expenses.
Real Results Achieved Together
By scaling EFESO’s Lean Rail Operations model, the client realized measurable gains in capacity, cost reduction, and rail network reliability.
$40M
Increase in rail loading capacity delivering direct annual impact
$10M
Avoided capital expenditure
$15M
Cost reductions from labor, demurrage, switching, and storage
Transformation Impact
- Enhanced visibility and responsiveness through real-time digital tools.
- Improved asset utilization and coordination across sites.
- Reduced congestion and operational inefficiencies.
- Built a scalable, standardized model for sustainable performance improvement.
- 20–40% improvement in Class 1 on-time train arrivals and departures
- 20% improvement in on-time switching performance
- 30% reduction in average rail yard car inventory
Our Approach
Building on a successful Texas pilot, EFESO scaled its Lean Rail Operations model across five North American sites over three years, ensuring knowledge transfer, standardization, and sustainable results.
- Lean Workflow Design
- Created flow and eliminated waste across rail logistics operations.
- Performance Management
- Introduced Daily Performance Dialogues (Pulse) for Rail Logistics and Load Rack Operations.
- Implemented actionable KPIs and digitized performance tracking.
- Digitization and Visual Management
- Deployed Power BI™ dashboards and mobile apps for real-time railcar tracking.
- Standard Work, Flow, and Pull
- Implemented standardized yard and load rack operating systems with digital input tools.
- Fleet Management
- Improved car traffic coordination and optimized railcar utilization.
- Leadership Development
- Delivered coaching on root-cause analysis, proactive problem solving, and system discipline.
- Shared KPIs and Reviews
- Strengthened collaboration with Class 1 rail providers through KPI-based reviews.
Related Services
Digital & AI
Digital investments fail to deliver operational impact. We translate technology into performance gains through practical AI deployment, data-driven decision systems, and frontline digital tools.
Manufacturing
Aging equipment meets rising costs and technology disruption. We transform operations through smart factory integration, predictive maintenance, and workforce capability building.
Operations Strategy and Transformation
Helping organizations rethink how they create value. We strengthen performance, build resilience, and accelerate growth across every layer of your business.
Supply Chain
Supplier complexity obscures 70% of your value creation. We strengthen networks through supplier development programs, risk mitigation strategies, and collaborative innovation platforms.
Facing Similar Rail Operations Challenges?
- Struggling with rail congestion or limited visibility in logistics operations.
- Seeking to scale lean methodologies across multiple sites.
- Aiming to improve throughput, reduce costs, and avoid capital investments.
- Looking to build leadership capability and accountability in rail performance.
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