SAP implementation at Canadian National Railway

Americas SAP User Group – Quebec Chapter

Tuesday March 25 th 2003 Alain Sénéchal, CA Manager, SAP Optimization Business Integration - Corporate Accounting Tel: (514) 399-6405 Pager: (514) 440-3612 Email: [email protected]

Who is CN?

     One of North America’s largest Class 1 railroads An innovative, industry-leading transportation company North America’s only tri-coastal NAFTA railroad Unmatched access to all three NAFTA nations A former Canadian government Crown Corporation - privatized in 1995 and now listed on the NYSE and Toronto Stock Exchange

CN’s Geographical Operations

CN Quick Facts 2002

       $6 billion revenues $12 billion of assets 22,868 employees 17,986 route miles of track 1,500 locomotives 61,800 railcars 3 million pieces of signal equipment

SAP Implementations – A 3 Phase approach

October 1999

PHASE 1

CN/GT Inventory Requisitioning Bar Coding Purchasing General Ledger Financial Reporting Accounts Payable CN Management Employee Information Compensation & Succession Time & Gross Payroll January 2001

PHASE 2

IC Rollout Intranet Requisitioning IC Field Inventory IC Rollout Projects System Asset Accounting Recoverable Billing US Rollout All Unionized Employees Time Reporting April 22, 2002

PHASE 3

Network Assets S&C Configuration Mgmt Procurement Cards Expense (OCS) Travel Booking (Pilot Sept 14) Field Inventory/Rail Shop Inventory Management Business Warehouse (Sept 9, 2001) Budget Planning (Sept 24, 2001) Workforce Planning/Qualifications Employee Self-Service Employee Health & Safety Net Payroll Canadian & US Benefits Mobile Assets (Loco/Car) Work Equipment Main Shops (Transcona)

Engineering Supply Management BPS/BW Finance Human Resources Mechanical

Scope of each phase

  Phase I: go-live Oct 1999 • FI: G/L, A/P, Financial Reporting (using • • SPL for Regulatory Reporting) MM: purchasing & inventory mgmt (Canada only) HR: management admin & payroll Phase II: go-live January 2001 • • • FI: capital, project mgmt, recoverables (Non Freight Billing) MM: purchasing & inventory mgmt (US), eProcurement (ARIBA) HR: union admin and payroll, time keeping

Scope of each phase

(Cont’d)

 Phase III: go-live April 29, 2002 • Plant Maintenance: • • Rail cars and locomotives Rail network assets • Facility maintenance (one • • • • location) Employee qualifications Gross-to-net payroll Travel expenses EH&S (Risk Management)

SAP Quick Facts

  

27,000 SAP/ESS users 9,000 SAP users HP/Unix on Oracle

Business Warehouse (BW)

    Used for SAP financial data used in budgeting, forecasting, Projects and recoverable expense accounting Budgeting at CN is currently done using a tool called Business Planning & Simulation (BPS) within SEM (Strategic Enterprise Management) Currently Upgrading SAP BW to version 3.0B and SEM to version 3.1B. Next cubes to be deployed are A/P for Spend Management and HR for labor relations

WHAT’S AHEAD?

     Integrating Fuel Consumptions Implementing Service PO module Expand scope of Natural Language Understanding (NLU) applications to facilitate SAP front-end input Implement and expand SAP workflow links with Lotus Notes, email, fax, documents, forms and SAP transactions with a document management solution SAP no longer supports the CIV invoice validation module and the migration to LIV is required in order to maintain a stable platform for invoice processing