Can Union Pacific Stay on the Right Track?
Operating approximately 8,000 locomotives over 32,000 miles in 23 states, Union Pacific (NYSE: UNP) has the reach and flexibility to capitalize on several opportunities. Changes in 2018 have put the company on a one-way trip to efficiency following a successful logistics model -- a model that will be important to its ongoing success.
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Union Pacific announced a plan in 2018 to streamline operations, lower costs, and increase profit margins. It was named the Unified Plan 2020, and it implemented precision scheduled railroading (PSR) into Union Pacific's operations. Prior to PSR, Union Pacific used a "hub and spoke" system, which involved allowing cars to enter a yard to be shuffled onto different trains. This system was terribly inefficient, requiring multiple redirects before a car reached its destination.
Source Fool.com
