{"id":17637,"date":"2024-01-10T21:40:33","date_gmt":"2024-01-10T21:40:33","guid":{"rendered":"https:\/\/plgconsulting.com\/?p=17637"},"modified":"2024-01-10T21:43:45","modified_gmt":"2024-01-10T21:43:45","slug":"rail-renewal-triumph-navigating-turbulent-markets-to-secure-savings-and-growth","status":"publish","type":"post","link":"https:\/\/plgconsulting.com\/rail-renewal-triumph-navigating-turbulent-markets-to-secure-savings-and-growth\/","title":{"rendered":"Rail Renewal Triumph: Navigating Turbulent Markets to Secure Savings and Growth"},"content":{"rendered":"\t\t
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A leader in paper, liner board, and paperboard recycling, with four rail-served production plants in Canada and 80+ destinations throughout North America, was seeking experienced rail commercial market expertise to help them maximize the outcome of their master rail contract renewals. With a tumultuous transportation market and railroads signaling significant price increases, this market leader wanted to optimize its rail logistics strategy, maintain its market position, minimize freight spend, secure price stability, and support future growth plans.<\/p>

The Client was renewing all of their rail contracts, covering an $80M (CAD) freight spend encompassing several plants, each with its own logistics needs and challenges. PLG Consulting\u2019s team of subject matter experts worked with the Client on past renewals and was brought in again to assist in the overall renewal strategy planning, preparation, and negotiations.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Services Provided<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Working collaboratively with the Client, PLG provided the outlined deliverables:<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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  1. Overview of the current and respective carrier rail market conditions to help prepare for negotiations.<\/li>
  2. Industry-specific rail market conditions to maximize positioning for rail negotiations.<\/li>
  3. Internal expectations to leadership<\/li>
  4. Collaborative review of the Client\u2019s portfolio of business, including:
    • Total freight spend ($) and volume by service provider<\/li>
    • Mapping of both historical and forecasted inbound and outbound flows<\/li>
    • Identification of pros\/cons of competitiveness for each book of business<\/li>
    • Development of strategy scenarios for negotiations<\/li>
    • Review of rail contracts<\/li>
    • Operational cost analysis of internal plant switching<\/li><\/ul><\/li>
    • Consulted in developing an approach based on each railroad\u2019s desire for retaining\/gaining volumes, the Client\u2019s competitive position on each book of business, as well as the whole offering in the renewal RFP
      • Developed a renewal strategy to maximize results and minimize price increases<\/li>
      • Assisted in an in-depth review of each of the Client\u2019s book of business, with its unique drivers and competitiveness<\/li>
      • Reviewed areas lacking competitiveness to create alternatives where possible, thereby increasing the Client\u2019s negotiating leverage<\/li>
      • Provided specific contractual language and terms guidance<\/li><\/ul><\/li><\/ol>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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        Results<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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        • \n\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t<\/i>\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\tDespite the current 7%+ rail inflation environment, the Client achieved <2% overall rate adjustment on $80M (CAD) of rail freight business. This was accomplished through careful planning, deep dive analysis, competitive positioning, and shrewd negotiations by the Client.<\/span>\n\t\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t
        • \n\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t<\/i>\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\tClient exceeded their expectations on projected rail freight outcomes and year-over-year rail pricing.<\/span>\n\t\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t
        • \n\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t<\/i>\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\tClient secured a necessary multi-year supply of used rail ties as a fuel source for their mills, potentially saving the Client several millions over the supply term.<\/span>\n\t\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t
        • \n\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t<\/i>\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\tMaintained and secured an extra daily plant switch at the mill at no extra cost.<\/span>\n\t\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t<\/ul>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/div>\r\n\t\t\t\t
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          \r\n\t\t\t\t\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/div>\r\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/section>\r\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

          A leader in paper, liner board, and paperboard recycling, with four rail-served production plants in Canada and 80+ destinations throughout North America, was seeking experienced rail commercial market expertise to help them maximize the outcome of their master rail contract renewals. With a tumultuous transportation market and railroads signaling significant price increases, this market leader […]<\/p>\n","protected":false},"author":1,"featured_media":17639,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"mc4wp_mailchimp_campaign":[],"footnotes":""},"categories":[37],"tags":[202],"class_list":["post-17637","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-case-study","tag-case-study-supply-chain-design-business-strategy-rail-contract-negotiation"],"acf":[],"featured_image_src":{"landsacpe":["https:\/\/plgconsulting.com\/wp-content\/uploads\/2024\/01\/KS2-Case-Study-Website-Image-600-x-400.png",600,400,false],"list":["https:\/\/plgconsulting.com\/wp-content\/uploads\/2024\/01\/KS2-Case-Study-Website-Image-600-x-400-463x348.png",463,348,true],"medium":["https:\/\/plgconsulting.com\/wp-content\/uploads\/2024\/01\/KS2-Case-Study-Website-Image-600-x-400-300x200.png",300,200,true],"full":["https:\/\/plgconsulting.com\/wp-content\/uploads\/2024\/01\/KS2-Case-Study-Website-Image-600-x-400.png",600,400,false]},"yoast_head":"\nRail Renewal Triumph: Navigating Turbulent Markets to Secure Savings and Growth - PLG Consulting<\/title>\n<meta name=\"description\" content=\"A leading Canadian-based land developer engages PLG Consulting to help them maximize the outcome of their master rail contract renewals.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/plgconsulting.com\/rail-renewal-triumph-navigating-turbulent-markets-to-secure-savings-and-growth\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Rail Renewal Triumph: Navigating Turbulent Markets to Secure Savings and Growth - PLG Consulting\" \/>\n<meta property=\"og:description\" content=\"A leading Canadian-based land developer engages PLG Consulting to help them maximize the outcome of their master rail contract renewals.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/plgconsulting.com\/rail-renewal-triumph-navigating-turbulent-markets-to-secure-savings-and-growth\/\" \/>\n<meta property=\"og:site_name\" content=\"PLG Consulting\" \/>\n<meta property=\"article:published_time\" content=\"2024-01-10T21:40:33+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-01-10T21:43:45+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/plgconsulting.com\/wp-content\/uploads\/2024\/01\/KS2-Case-Study-Website-Image-600-x-400.png\" \/>\n\t<meta property=\"og:image:width\" content=\"600\" \/>\n\t<meta property=\"og:image:height\" content=\"400\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"PLG Consulting\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"PLG Consulting\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/plgconsulting.com\/rail-renewal-triumph-navigating-turbulent-markets-to-secure-savings-and-growth\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/plgconsulting.com\/rail-renewal-triumph-navigating-turbulent-markets-to-secure-savings-and-growth\/\"},\"author\":{\"name\":\"PLG Consulting\",\"@id\":\"https:\/\/plgconsulting.com\/#\/schema\/person\/2eb8ca23913f355f903530c183a7f4ea\"},\"headline\":\"Rail Renewal Triumph: Navigating Turbulent Markets to Secure Savings and Growth\",\"datePublished\":\"2024-01-10T21:40:33+00:00\",\"dateModified\":\"2024-01-10T21:43:45+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/plgconsulting.com\/rail-renewal-triumph-navigating-turbulent-markets-to-secure-savings-and-growth\/\"},\"wordCount\":340,\"publisher\":{\"@id\":\"https:\/\/plgconsulting.com\/#organization\"},\"image\":{\"@id\":\"https:\/\/plgconsulting.com\/rail-renewal-triumph-navigating-turbulent-markets-to-secure-savings-and-growth\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/plgconsulting.com\/wp-content\/uploads\/2024\/01\/KS2-Case-Study-Website-Image-600-x-400.png\",\"keywords\":[\"case study; supply chain design; business strategy; rail contract negotiation\"],\"articleSection\":[\"Case Study\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/plgconsulting.com\/rail-renewal-triumph-navigating-turbulent-markets-to-secure-savings-and-growth\/\",\"url\":\"https:\/\/plgconsulting.com\/rail-renewal-triumph-navigating-turbulent-markets-to-secure-savings-and-growth\/\",\"name\":\"Rail Renewal Triumph: Navigating Turbulent Markets to Secure Savings and Growth - 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