RR-10 RR-10-05-01 — Demurrage and Accessorial Billing
This process handles the demurrage and accessorial billing for customers of a US Class I freight railroad. It involves tracking customer shipments, identifying delays, calculating charges, and ensuring compliance with regulatory requirements.
🗺 BPMN Process Flow
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📋 Process Attributes
| Process ID | RR-10-05-01 |
|---|---|
| Domain Family | COMMERCIAL |
| L1 Domain | Commercial, Pricing & Customer Service |
| L2 Process Group | Demurrage and Accessorial Billing |
| Trigger | A customer reports a delay in shipment or an additional service request is made. |
| Outcome | Successful completion results in accurate demurrage and accessorial billing, timely payment to the customer, and updated records for future reference. |
| Systems | ShipmentVision UP customer portal (up.com secure portal) Loup Logistics |
| Regulatory Hooks | 49 CFR Part 217 49 CFR Part 220 49 CFR Part 232 AAR Interchange Rules (Rule 88 and related) |
📋 L4 Process Steps
| Step | Name | Role | System | Input | Output | KPI | Pain Point / Risk | Decision? | Exception? |
|---|---|---|---|---|---|---|---|---|---|
| 1.1 | Receive Shipment Report | Dedicated Logistics Representative (Loup) | ShipmentVision | Customer report of delay or additional service request | Shipment report logged in system | Response time to customer inquiry within 24 hours | Inaccurate reporting by customers | N | Y |
| 1.2 | Verify Shipment Status | Account Manager / Sales Representative | Loup Logistics | Shipment report logged in system | Verification of shipment status | Accuracy rate of shipment status verification above 95% | Data discrepancies between systems | Y | N |
| 1.3 | Calculate Demurrage Charges | Pricing / Yield Manager | UP customer portal (up.com secure portal) | Verification of shipment status | Demurrage charges calculation | Accuracy rate of demurrage charge calculation above 98% | Complexity in calculating demurrage based on different rates | N | Y |
| 1.4 | Review and Approve Charges | VP-Loup (Loup Logistics) | UP customer portal (up.com secure portal) | Demurrage charges calculation | Approved demurrage charges | Approval time for demurrage charges within 48 hours | Disputes over demurrage charges | Y | N |
| 1.5 | Generate Billing Document | Account Manager / Sales Representative | UP customer portal (up.com secure portal) | Approved demurrage charges | Billing document | Time to generate billing document within 24 hours of approval | System errors in generating billing documents | N | Y |
| 1.6 | Send Billing Document to Customer | Account Manager / Sales Representative | UP customer portal (up.com secure portal) | Billing document | Sent billing document | Customer notification rate above 90% | Customer unavailability for communication | N | Y |
| 1.7 | Receive Payment from Customer | Account Manager / Sales Representative | UP customer portal (up.com secure portal) | Sent billing document | Payment received | Payment collection rate above 95% | Late payments or non-payment | Y | N |
| 1.8 | Update Customer Records | Account Manager / Sales Representative | UP customer portal (up.com secure portal) | Payment received | Updated customer records | Accuracy rate of record updates above 98% | Data entry errors in updating records | N | Y |
| 1.9 | Review and Adjust if Necessary | Claims Adjuster | UP customer portal (up.com secure portal) | Updated customer records | Adjusted billing if necessary | Adjustment rate for errors below 5% | Errors in initial billing | Y | N |
| 1.10 | Finalize Billing Process | Account Manager / Sales Representative | UP customer portal (up.com secure portal) | Adjusted billing if necessary | Completed billing process | Time to complete billing process within 7 days of initial report | Complex cases requiring multiple adjustments | N | Y |
📊 KPIs & Risk Register
KPIs
Response time to customer inquiry within 24 hours Accuracy rate of shipment status verification above 95% Accuracy rate of demurrage charge calculation above 98% Approval time for demurrage charges within 48 hours Time to generate billing document within 24 hours of approval Customer notification rate above 90% Payment collection rate above 95% Accuracy rate of record updates above 98% Adjustment rate for errors below 5% Time to complete billing process within 7 days of initial report
Key Risks
Inaccurate reporting by customers Data discrepancies between systems Complexity in calculating demurrage based on different rates Disputes over demurrage charges System errors in generating billing documents Customer unavailability for communication Late payments or non-payment Data entry errors in updating records Errors in initial billing Complex cases requiring multiple adjustments
Swim Lanes
Dedicated Logistics Representative (Loup) · 1.1, 1.2, 1.3, 1.4 Account Manager / Sales Representative · 1.5, 1.6, 1.7, 1.8 Pricing / Yield Manager · 1.3 VP-Loup (Loup Logistics) · 1.4 Claims Adjuster · 1.9