14
Plants across the U.S.
Unlocking Hidden Value in Rail Logistics: Optimizing Rail Operations for Margin Recovery in Petrochemical Sites
Industry: Oil & Gas, Sustainable Energy
Service: Digital & Ai
Service: Lean Lab
Service: Operations Strategy and Transformation
Service: Supply Chain
Our Client
A leading petrochemical company with 14 plants across the U.S., seeking to optimize rail logistics performance at four of its most complex refinery and chemical sites.
The Challenge
The company faced chronic inefficiencies in rail operations that affected product availability, cost, and customer service:
- Inefficient first mile/last mile rail operations impacting product delivery.
- Lack of standard operating procedures for switching and loading.
- High storage and freight costs due to poor car inventory management.
- Limited visibility and data for real-time decision-making.
Real Results Achieved Together
By applying Lean principles and digital performance management, EFESO helped the client unlock significant value in its rail logistics operations.
15%
Increase in daily railcar throughput at two sites, generating $10 million in additional annual margin
10%
Improvement in vendor performance through digitized KPI tracking and 98% compliance in car inventory management
$1.2M
Annual savings in yard storage and switching costs.
Transformation Impact
- Strengthened operational control through standardized rail workflows and performance tracking.
- Increased transparency and accountability across refinery and logistics operations.
- Enhanced collaboration between Class 1 rail providers, switching vendors, and refinery teams.
- Established a scalable model now being replicated across other sites to sustain long-term gain
- Reduced CapEx needs through better capacity utilization, eliminating new transportation investments.
Our Approach
EFESO applied Lean methodologies, digital tools, and real-time performance tracking to optimize rail logistics across sites:
Daily Rail Performance Tracking & KPI Monitoring
- Introduced a Daily Performance Dialogue (Pulse Process) for rail and load rack operations.
- Deployed real-time KPI tracking to drive accountability and data-based decisions.
Standardized Rail Operating System
- Designed standard workflows for railcar movement based on Lean flow and pull principles.
- Aligned switching vendors and Class 1 rail providers with refinery demand.
Load Rack Optimization
- Implemented a pull system to improve product flow efficiency.
- Shifted operational control of load racks from vendors to refinery teams.
Digital Data Collection & Automation
- Developed a cloud-based solution to monitor loading and offloading times.
- Automated billing and product tracking, improving accuracy and speed.
Inventory Optimization
- Conducted dynamic fleet sizing to reduce storage costs.
- Improved Class 1 service reliability, reaching 100% on-time delivery compliance.
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.
Lean Lab
Volatile workloads create productivity troughs and lead-time peaks. We stabilize lab operations through capacity modeling, dynamic resource allocation, and lean process optimization.
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 Challenges?
- Unlock hidden value in rail or transportation operations.
- Improve throughput and reduce logistics costs through Lean and digital solutions.
- Align external partners and internal teams around performance excellence.
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