CSX Corporation Eliminates Key-Process Customizations and Improves Collections with Enterprise Resource Planning Upgrade
 
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CSX Corporation Eliminates Key-Process Customizations and Improves Collections with Enterprise Resource Planning Upgrade

CSX Corporation is a national transportation company that provides rail, intermodal, and rail-truck transload services. The company’s transportation network, which spans 21,000 miles, connects customers to more than 70 ocean, river, and lake ports, as well as production and distribution centers and markets in 23 states and the District of Columbia.

 
 

 
 

Challenges

A word from CSX Corporation

  • “Oracle E-Business Suite Release 12.1 provides the scalability and functionality we need to support our transportation network in a more integrated, efficient, and automated manner.” – Tony Papa, Director, Information Technology, CSX Corporation

  • Upgrade to Oracle E-Business Suite Release 12.1 to ensure continued support for the company’s enterprise resource planning (ERP) environment and take advantage of new features, such as subledger accounting and supplier lifecycle management to support the tier-one transportation company
  • Ensure minimum downtime for end users and the data warehouse—which is the organization’s ad hoc-reporting source—and complete the upgrade on time and on budget
  • Review and reduce application customizations to streamline IT management

Solutions

  • Upgraded to Oracle E-Business Suite Release 12.1 and eliminated customizations to key business processes, such as intercompany accounting, enabling CXS to improve control over general-ledger asset and liability-account generation and ensure greater consistency across subledgers
  • Completed the upgrade in just 58 hours, during weekend hours, to ensure minimum downtime for end users
  • Moved 6,000 freight customers, accounting for 3.5 million bills annually, to Oracle Accounts Receivable to provide continuous information regarding collection status―reducing the number of unpaid accounts and improving collection success
  • Centralized authority for sales and use tax control, streamlining transaction-based taxing for freight shipments and ensuring greater accuracy
  • Centralized bank data via Oracle Cash Management to provide greater visibility and support bank administration consolidation across subledgers
  • Centralized data within a trading community architecture, such as contact and relationship information, for 53,000 suppliers, 78,000 customer accounts, and 130,000 bill-to sites
  • Ensured better end-user experiences for employees working within seven business units, helping to improve efficiency and productivity
  • Built a solid ERP foundation for the future integration of additional Oracle tools, such as Oracle's Primavera solutions

Implementation Process

To ensure upgrade success, CSX Corporation established a governance committee that included senior-level business partners and technology managers, conducted an internal business process audit, assigned a business lead, converted incremental subledger accounting history, and planned and scheduled the upgrade to occur over one weekend.

CSX then performed multiple front-to-back test conversions; created thorough test cases, including period-close testing; developed a full playbook, including milestones and steps, timelines, responsible parties, and all contact information; mirrored production the weekend before go live; and defined the scheduled, cutover weekend communication-status procedure.

With a well-organized plan in place, CSX completed the upgrade in just 58 hours, primarily during weekend hours to minimize end user impact.