RR-10 RR-10-05-02 — Demurrage and Accessorial Billing
This process manages the billing for demurrage and accessorial charges on freight cars at Union Pacific terminals. It ensures accurate tracking of car dwell times, adherence to regulatory requirements, and timely communication with customers.
🗺 BPMN Process Flow
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📋 Process Attributes
| Process ID | RR-10-05-02 |
|---|---|
| Domain Family | COMMERCIAL |
| L1 Domain | Commercial, Pricing & Customer Service |
| L2 Process Group | Demurrage and Accessorial Billing |
| Trigger | Detection of a freight car exceeding the agreed-upon demurrage time or occurrence of an accessorial service. |
| Outcome | Successful completion results in accurate billing for demurrage and accessorial charges, updated customer records, and compliance with regulatory standards. |
| Systems | NetControl I-ETMS Loup Logistics ShipmentVision UP customer portal (up.com secure portal) Transentric |
| Regulatory Hooks | 49 CFR Part 217 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 | Identify Demurrage or Accessorial Event | Train Dispatcher | NetControl | Car tracking data | Demurrage or accessorial event report | Time to identify demurrage/accessorial event < 1 hour | Delayed identification can lead to missed billing opportunities. | Y | N |
| 1.2 | Verify Car Status and Location | Yardmaster | I-ETMS | Demurrage or accessorial event report | Verified car status and location | Verification accuracy > 95% | Incorrect verification can lead to erroneous billing. | N | Y |
| 1.3 | Determine Applicable Charges | Pricing / Yield Manager | Loup Logistics | Verified car status and location | Applicable demurrage or accessorial charges | Charge determination accuracy > 90% | Incorrect charge calculation can lead to customer disputes. | Y | N |
| 1.4 | Generate Billing Document | Account Manager / Sales Representative | ShipmentVision | Applicable demurrage or accessorial charges | Billing document | Billing document generation time < 2 hours | Delayed billing can impact customer relationships. | N | Y |
| 1.5 | Send Billing Notification to Customer | Account Manager / Sales Representative | UP customer portal (up.com secure portal) | Billing document | Customer notification | Notification delivery time < 1 hour | Failed notifications can lead to lost revenue. | N | Y |
| 1.6 | Review and Approve Billing | VP-Loup (Loup Logistics) | Transentric | Customer notification | Billing approval | Approval time < 4 hours | Delayed approvals can cause financial delays. | Y | N |
| 1.7 | Update Customer Records | Account Manager / Sales Representative | UP customer portal (up.com secure portal) | Billing approval | Updated customer record | Record update time < 1 hour | Outdated records can lead to billing errors. | N | Y |
| 1.8 | Monitor and Resolve Disputes | Claims Adjuster | Transentric | Customer disputes | Dispute resolution report | Dispute resolution time < 24 hours | Unresolved disputes can damage customer relationships. | Y | N |
| 1.9 | Update Internal Systems | Service Design / Network Planning Analyst | NetControl | Dispute resolution report | Updated internal system records | System update time < 2 hours | Inaccurate system updates can lead to future billing errors. | N | Y |
| 1.10 | Review and Report Metrics | VP Network Planning & Operations | Wabtrax | Billing data | Metrics report | Report accuracy > 95% | Inaccurate metrics can lead to poor decision-making. | N | Y |
| 1.11 | Adjust Pricing Strategy | Pricing / Yield Manager | Loup Logistics | Metrics report | Updated pricing strategy | Strategy adjustment time < 1 week | Ineffective pricing strategies can reduce revenue. | Y | N |
| 1.12 | Close Billing Cycle | Account Manager / Sales Representative | UP customer portal (up.com secure portal) | Updated pricing strategy | Closed billing cycle | Cycle closure time < 24 hours | Open cycles can lead to financial discrepancies. | N | Y |
📊 KPIs & Risk Register
KPIs
Time to identify demurrage/accessorial event < 1 hour Verification accuracy > 95% Charge determination accuracy > 90% Billing document generation time < 2 hours Notification delivery time < 1 hour Approval time < 4 hours Record update time < 1 hour Dispute resolution time < 24 hours System update time < 2 hours Report accuracy > 95% Strategy adjustment time < 1 week Cycle closure time < 24 hours
Key Risks
Incorrect demurrage or accessorial event identification leading to missed billing opportunities. Verification errors causing erroneous billing. Incorrect charge calculation resulting in customer disputes. Delayed billing impacting customer relationships. Failed notifications leading to lost revenue. Delayed approvals causing financial delays. Outdated records leading to billing errors. Unresolved disputes damaging customer relationships. Inaccurate system updates leading to future billing errors. Ineffective pricing strategies reducing revenue.
Swim Lanes
Train Dispatcher · 1.1 Yardmaster · 1.2 Pricing / Yield Manager · 1.3, 1.11 Account Manager / Sales Representative · 1.4, 1.5, 1.7, 1.12 VP-Loup (Loup Logistics) · 1.6 Claims Adjuster · 1.8