Union Pacific 2001 Annual Report Download - page 5

THE KEY
GROWTH
We believe we will continue to grow revenue faster than the economy by focusing
on three components: market, price and penetration – all backed by solid service.
It’s a disciplined approach made actionable by targeting specific customers and
markets – with the right products and service to drive yield improvement.
We assume that the market is going to grow at basically the same rate as the
economy overall, but we believe our franchise provides access to some markets,
such as Mexico and the booming southwestern United States, that are going to
grow faster. On the price front, our agenda is aggressive. While price improvement
is the most efficient way to grow the bottom line, it must be based on products
and value-added services that customers recognize as best in class – and that’s
exactly what we’re providing. And, on top of that, we’ve got our sights set on
growing market share by converting highway business to railroad business on the
Union Pacific. We’re using quality principles to design and launch services that
meet customer requirements with a high degree of reliability. In 2001 our new
services were very successful, with revenue growth of 15%.
CUSTOMER SERVICE
Reliable, consistent service is the key to penetrating new markets and growing
business with our existing customers. We’ve established alliances with the other
railroads to more effectively meet customer needs and introduce competitive new
services. For example, our “Express Lane” for perishables running from California
and the Pacific Northwest to points along the East Coast is partnered with the
CSX. In 2001, it was 90% on time and had revenue growth of 12%. In addition,
the “Blue Streak” intermodal service running from Los Angeles to Atlanta, and
points beyond, interchanges with the Norfolk Southern and has been virtually
sold out since its inception due to its 99% on-time performance.
In 2001 we enhanced the ease of doing business for our customers by increas-
ing our use of technology. At the National Customer Service Center, we imple-
mented a voice recognition system, an industry first, which allows customers to
GREAT IDEAS
Union Pacific employees are not just
committed to doing their jobs, but
to making an impact by doing their
jobs better. Ideas to improve opera-
tions are continually evaluated –
none are considered too big or too
small. Here are just a few examples
of that innovative thinking:
Rail Alignment Plates – Mainte-
nance gangs traditionally used
wedges and jacks to position rail for
field welds. However, by implement-
ing rail alignment plates, Jacob
Abeyta (below left), Western Region
Track Maintenance, is able to align
the rail and complete the weld more
precisely and in 25% less time.
Lay-Out Table – Geary Portell, Ken
Leftridge, Richard Kyburz and Henry
Skiles (below, from left to right), De
Soto Car Shop, know that time is
money, especially when building 300
steel cars that each require 48 hand-
assembled supports. Because the sup-
ports had to be measured and welded
at specific angles, these men designed
and built a precision lay-out table
that ensured consistent angles for
each support and eliminated 450
hours of shop time.
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OUR CHALLENGE IS TO LEVERAGE THIS POWERFUL
FRANCHISE WITH THE RIGHT STRATEGY
BRINGING THIS STRATEGY TO LIFE