Australasian Railway Association Heavy Haul Rail Conference 27 – 28 August 2014 Pacific National “Transformation to Customer Service” Stephen Cowan
Nov 29, 2014
Australasian Railway Association
Heavy Haul Rail Conference
27 – 28 August 2014
Pacific National
“Transformation to Customer Service”
Stephen Cowan
Our values
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SAFETY We‟re committed to
getting our people home
safely every day
CUSTOMER Supporting our customers
to succeed is at the heart
of all we do
PEOPLE &
TEAMWORK Working together in partnership
is how we achieve our goals
PERFORMANCE Our decisions and
actions focus on delivering
superior performance
Australia’s Largest National Rail
Freight & Ports Operator
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Pacific National at a glance
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Approximately
41%
AUSTRALIAN
COAL EXPORTS
Approximately
70%
RAIL FREIGHT ON
THE EAST-WEST AND
NORTH-SOUTH LONG
HAUL RAIL
CORRIDORS
3,600 employees
581 locomotives
12,700 wagons
800 train services/week
156mt Coal, 24mt Bulk
Pacific National – NSW/Vic
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1,860 employees
360 locomotives
5,300 wagons
>300 train services/week
125mt Coal & Bulk
39 customers
22 Driver depots
11 Maintenance facilities
Integrated Service Provider
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Revenue by market group
Grain
Construction & Infrastructure
Short Haul Containers
Minerals
Coal
• Broad span of market groups providing diversification
• Ability to direct labour for peak demands
• Recognised industry leader
• Representation with regulators and industry bodies
Our Customer Environment
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• Lower commodity prices
• Higher $AU
• Increased production costs
• Reduced demand
• Environmental/Government hurdles
• High competition markets
Customer Environment
• Reduced expenditure (infrastructure)
• Focus on low cost operations
• Downsizing (contractors, employees, sites)
• Commercial pressure applied to Suppliers
Impacts
• Increased focus on efficiencies
• Using multiple service providers (road/rail)
• Increased focus on performance of service providers - Pacific National
Result
Customer Survey – Customer
Comments
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Just to improve on the
speed of matters would
be helpful
Have some terrific
people at PN Coal
The bureaucracy and
contractual control and
lack of flexibility
There are other
companies that do it
better
...put some energy into
translating their words
into outcomes
They do not take
ownership of issues in
the coal chain They are trying to
address the issues that
we have had to raise
It‟s always difficult to
find relevant
information
The biggest issue..is
not being flexible from
an end supplier point of
view
The people I deal with
are very good
Big and
arrogant...They need
more innovation, more
flexibility, more
continuous
improvement
Pacific National – Response
Adapt, Innovate and Outperform
Value for money – competitive market position.
Performance and reliability – do what needs to be done
Flexibility – adapt and change
Innovation – technical and commercial
Industry Participation – active engagement
Customer Centricity – structure for Customer outcomes
Outward looking Customer focus.
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Phase 1 – Customer Focus
• Customer alignment
• Customer engagement
• Performance measurement
• Operating mode
Phase 2 – Performance
• Focus on sustained performance
• Shift Management Review
• Asset Management plan
• Industry Influence
• Volume Growth
Change Management
Employee Culture & Engagement
“The Transformation Program intends to transform the business
into a high performing business that has an embedded safety,
customer service, teamwork and performance culture.”
Transformation
Customer Centricity
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In a customer-centric organisation, the customer is at the core of
everything. All processes and company activity are done in support of
what the customer is trying to accomplish
Transformation – Working Together
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Our Objective
To Safely Deliver the Customer Service Plan
Competitive Advantage
Delivery of superior customer outcomes in multi-user,
complex supply chains. Differentiation through end-
to-end capability, innovation, skills, knowledge, and
experience.
Performance Focus Hunter Valley Coal Chain
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Latent capacity released, cycle time reduced, variance to plan reduced
12% System Throughput Increase
80% Decrease in PN Unplanned Losses
Performance Focus Hunter Valley Coal Chain
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Efficiencies and change in operating mode
result in:
• Reduction in cancellations and
• Improvement in on time running
Turn Around in 12 Months
Customer Comments - Positive
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We are Starting to Look Like This!!!
Changing Old habits, Old Culture….
‣ “You have to admit you have a problem before you can actually
change or improve.”
Breaking down the walls
Creating a „One Team‟ culture
‣ Working Together, One Team. One Plan, One Best Way
‣ Monthly Interface meetings
Clear accountabilities
Centralised customer touch point – “Who‟s doing what?”
Clear communication – internally & externally
Honest, Open and Trusting
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Working Together
Questions
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