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Union Pacific Sales

To drive freight transportation excellence through innovative rail solutions that power economic growth by becoming North America's premier transportation partner

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To drive freight transportation excellence through innovative rail solutions that power economic growth by becoming North America's premier transportation partner

Strengths

  • NETWORK: Extensive 32,000+ mile rail network across 23 states
  • INFRASTRUCTURE: $3.4B annual capital investments in infrastructure
  • TECHNOLOGY: Advanced PSR implementation driving 63% improvement
  • FINANCIALS: Industry-leading operating ratio of 60.1%
  • SUSTAINABILITY: 22% reduction in locomotive GHG emissions since 2018

Weaknesses

  • WORKFORCE: 30% reduction in workforce causing service disruptions
  • LOGISTICS: Last-mile delivery solutions lag behind competitors
  • TECHNOLOGY: Digital customer experience platforms need modernization
  • CAPACITY: Limited surge capacity during peak volume periods
  • PARTNERSHIPS: Insufficient integration with intermodal partners

Opportunities

  • AUTOMOTIVE: Expanding EV manufacturing in service territory
  • INTERMODAL: Growing e-commerce demand for rail-based logistics
  • SUSTAINABILITY: Federal funding for green transportation projects
  • TECHNOLOGY: AI/ML optimization of network capacity utilization
  • INTERNATIONAL: Mexico nearshoring manufacturing boom increasing demand

Threats

  • COMPETITION: Trucking industry technological advancements
  • REGULATORY: Increased safety and emissions regulations
  • WEATHER: Extreme climate events disrupting network reliability
  • ECONOMIC: Potential recession impacting freight volumes
  • LABOR: Union negotiations and potential work stoppages

Key Priorities

  • CUSTOMER: Modernize digital experience platform for seamless shipping
  • OPERATIONS: Implement AI-driven capacity optimization solutions
  • PARTNERSHIPS: Expand intermodal connectivity and last-mile solutions
  • SUSTAINABILITY: Accelerate green initiatives to meet market demand
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To drive freight transportation excellence through innovative rail solutions that power economic growth by becoming North America's premier transportation partner

CUSTOMER OBSESSION

Revolutionize the shipper experience through innovation

  • PLATFORM: Launch next-gen customer experience platform with real-time tracking for 100% of shipments by Q3
  • SATISFACTION: Increase Net Promoter Score from 28 to 40+ by improving on-time performance to 92%
  • ADOPTION: Achieve 75% customer adoption of digital platform with 85%+ engagement rate
  • EXPERIENCE: Reduce customer service response time by 40% through AI-powered automation
OPERATIONAL EXCELLENCE

Maximize network efficiency through AI optimization

  • OPTIMIZATION: Implement AI-driven capacity management across 80% of network, improving utilization by 15%
  • PREDICTION: Deploy predictive maintenance on 100% of locomotives, reducing unplanned downtime by 22%
  • EFFICIENCY: Improve operating ratio from 60.1% to 58.5% through technology-enabled process improvements
  • AUTOMATION: Automate 40% of yard operations at top 10 terminals, increasing throughput by 18%
SEAMLESS CONNECTIVITY

Create industry-leading intermodal ecosystem

  • INTEGRATION: Establish API connectivity with 100% of top 25 intermodal partners by Q4
  • LAST-MILE: Launch pilot last-mile delivery solutions in 5 major markets, targeting 90% on-time delivery
  • VISIBILITY: Provide end-to-end shipment visibility for 80% of intermodal freight through partner integrations
  • EXPANSION: Increase intermodal volume by 12% through enhanced partner connectivity and capacity
GREEN LEADERSHIP

Accelerate sustainable transportation solutions

  • EFFICIENCY: Reduce locomotive fuel consumption by 8% through AI-optimized train handling systems
  • EMISSIONS: Decrease GHG emissions intensity by 5% YoY through clean energy initiatives
  • CERTIFICATION: Secure sustainable shipping certification for 40% of freight corridors
  • PARTNERSHIPS: Establish 3 major sustainability partnerships for carbon-neutral shipping options
METRICS
  • REVENUE GROWTH RATE: 6% YoY
  • OPERATING RATIO: 58.5%
  • CUSTOMER NET PROMOTER SCORE: 40+
VALUES
  • Safety
  • High Ethical Standards
  • Teamwork
  • Respect
  • Environmental Stewardship
Union Pacific logo
Align the learnings

Union Pacific Sales Retrospective

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To drive freight transportation excellence through innovative rail solutions that power economic growth by becoming North America's premier transportation partner

What Went Well

  • FINANCIAL: Achieved record quarterly operating income of $2.3 billion
  • EFFICIENCY: Operating ratio improved by 1.2 percentage points to 60.1%
  • SUSTAINABILITY: Reduced fuel consumption by 4% through tech initiatives
  • SAFETY: Achieved best-ever employee safety incident rate, down 8% YoY

Not So Well

  • VOLUME: Total carload volumes declined 3% YoY due to economic headwinds
  • SERVICE: On-time performance metrics fell 4 points below quarterly goal
  • CUSTOMERS: Net Promoter Score decreased 6 points to 28 amid service issues
  • TALENT: Employee turnover increased 5% in key operational roles

Learnings

  • CAPACITY: Network optimization more critical during volume fluctuations
  • TECHNOLOGY: Digital customer solutions directly impact retention rates
  • WORKFORCE: Operational staffing levels impact service metrics directly
  • PARTNERSHIPS: Intermodal partner integration critical to growth strategy

Action Items

  • EXPERIENCE: Launch new customer platform with real-time tracking by Q3
  • CAPACITY: Implement AI-driven load balancing across major corridors Q2
  • TALENT: Develop comprehensive operational skills development program
  • INTEGRATION: Expand API connectivity with top 25 intermodal partners
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To drive freight transportation excellence through innovative rail solutions that power economic growth by becoming North America's premier transportation partner

Strengths

  • DATA: Extensive operational data from network sensors and IoT
  • ANALYTICS: Advanced predictive maintenance reducing downtime by 18%
  • AUTOMATION: Yard automation systems increasing throughput by 15%
  • INVESTMENT: $1B+ committed to technology infrastructure upgrades
  • TALENT: Growing data science and AI engineering team

Weaknesses

  • INTEGRATION: Legacy systems limiting AI implementation speed
  • CULTURE: Traditional operations mindset resisting AI adoption
  • TRAINING: Insufficient AI skills development for workforce
  • GOVERNANCE: Unclear data governance standards and protocols
  • VISIBILITY: Limited real-time visibility for customers

Opportunities

  • OPTIMIZATION: AI-powered network optimization to improve capacity 22%
  • PREDICTION: Demand forecasting models to optimize asset utilization
  • EFFICIENCY: Autonomous inspection drones reducing maintenance costs
  • EXPERIENCE: AI-powered customer platforms enhancing shipping visibility
  • SUSTAINABILITY: ML for fuel optimization reducing emissions by 10%

Threats

  • COMPETITION: Tech-focused logistics startups disrupting market
  • SECURITY: Increasing cybersecurity threats to digital infrastructure
  • TALENT: Intense competition for AI/ML engineering talent
  • INVESTMENT: Rising costs of AI implementation and maintenance
  • REGULATION: Emerging AI governance and compliance requirements

Key Priorities

  • PLATFORM: Build integrated AI-powered customer experience platform
  • OPERATIONS: Deploy network-wide AI optimization for capacity gains
  • TALENT: Accelerate AI skills development across the organization
  • VISIBILITY: Implement real-time shipment tracking and analytics