RR-13 RR-13-06-01 — Fuel Procurement and Hedging

The process for fuel procurement and hedging involves identifying fuel needs based on revenue accounting data, negotiating contracts with suppliers, monitoring fuel usage, and adjusting strategies to optimize costs while ensuring compliance with regulatory requirements.

🗺 BPMN Process Flow

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📋 Process Attributes

Process ID	RR-13-06-01
Domain Family	COMMERCIAL
L1 Domain	Finance, Revenue Accounting & Procurement
L2 Process Group	Fuel Procurement and Hedging
Trigger	Monthly revenue report from the Finance department indicating fuel consumption trends and potential cost savings opportunities.
Outcome	A successful completion of this process results in optimized fuel procurement strategies, reduced operational costs, and adherence to all relevant regulations and industry standards.
Systems	TRAIN II CHARM Fuel surcharge program NetControl up.com customer portal
Regulatory Hooks	49 CFR Part 1180 GCOR

📋 L4 Process Steps

Step	Name	Role	System	Input	Output	KPI	Pain Point / Risk	Decision?	Exception?
1.1	Review Revenue Accounting Data	Revenue Accountant	TRAIN II	Monthly revenue report	Fuel consumption analysis	Fuel efficiency ratio above 0.5	Inaccurate data entry in TRAIN II	N	N
1.2	Identify Fuel Needs	Cost Analyst (regulatory costing)	CHARM	Fuel consumption analysis	Fuel procurement plan	Fuel procurement lead time under 30 days	Inconsistent fuel usage data	N	N
1.3	Negotiate Fuel Contracts	VP Network Planning & Operations	Fuel surcharge program	Fuel procurement plan	Signed fuel contracts	Contract negotiation success rate above 90%	Supplier contract terms not favorable	Y	N
1.4	Monitor Fuel Usage	Train Dispatcher	NetControl	Signed fuel contracts	Fuel usage report	Fuel usage accuracy above 95%	Inaccurate fuel consumption tracking	N	Y
1.5	Adjust Procurement Strategies	Revenue Accountant	CHARM	Fuel usage report	Updated fuel procurement plan	Cost savings from procurement adjustments above 2%	Lack of historical data for analysis	Y	N
1.6	Review Regulatory Compliance	Service Design / Network Planning Analyst	GCOR	Updated fuel procurement plan	Regulatory compliance report	Compliance with regulatory requirements 100%	Complexity of regulatory requirements	Y	N
1.7	Report to Management	President and CEO	up.com customer portal	Regulatory compliance report	Management dashboard update	Timely reporting of fuel procurement status	Data accessibility issues	N	Y
1.8	Review Fuel Surcharge Program	Revenue Accountant	Fuel surcharge program	Management dashboard update	Fuel surcharge adjustment plan	Fuel surcharge revenue above projected targets	Dynamic market conditions	Y	N
1.9	Implement Fuel Surcharge Adjustments	VP Network Planning & Operations	up.com customer portal	Fuel surcharge adjustment plan	Updated fuel surcharge rates	Surcharge implementation accuracy 100%	Customer resistance to rate changes	N	Y
1.10	Review and Optimize	Cost Analyst (regulatory costing)	CHARM	Updated fuel surcharge rates	Optimized fuel procurement strategy	Overall cost reduction from procurement and surcharges above 5%	Continuous monitoring of market trends	Y	N
1.11	Update Historical Data	Revenue Accountant	TRAIN II	Optimized fuel procurement strategy	Updated historical data records	Data completeness above 98%	Data entry errors	N	Y
1.12	Close Process Cycle	President and CEO	up.com customer portal	Updated historical data records	Process cycle closure report	Cycle time for fuel procurement process under 60 days	Resource allocation issues	N	Y

📊 KPIs & Risk Register

KPIs

Fuel efficiency ratio above 0.5 Fuel procurement lead time under 30 days Contract negotiation success rate above 90% Fuel usage accuracy above 95% Cost savings from procurement adjustments above 2% Compliance with regulatory requirements 100% Timely reporting of fuel procurement status Fuel surcharge revenue above projected targets Surcharge implementation accuracy 100% Overall cost reduction from procurement and surcharges above 5% Data completeness above 98% Cycle time for fuel procurement process under 60 days

Key Risks

Inaccurate data entry in TRAIN II Supplier contract terms not favorable Inconsistent fuel usage data Lack of historical data for analysis Complexity of regulatory requirements Data accessibility issues Dynamic market conditions Customer resistance to rate changes Continuous monitoring of market trends Data entry errors Resource allocation issues

Swim Lanes

Revenue Accountant · 1.1, 1.2, 1.5, 1.8, 1.10, 1.11 Cost Analyst (regulatory costing) · 1.4, 1.6, 1.9, 1.12 VP Network Planning & Operations · 1.3, 1.7, 1.9 Train Dispatcher · 1.4

Independently compiled from public sources. Not affiliated with, sponsored by, or endorsed by Union Pacific or any other railroad. Illustrative of US Class I practice; every system, regulation, role and metric named here traces to a sourced entry in registries/.