Alain Sénéchal, CAAlain Sénéchal, CAManager, SAP OptimizationManager, SAP OptimizationBusiness Integration - Corporate AccountingBusiness Integration - Corporate AccountingTel: (514) 399-6405 Tel: (514) 399-6405 Pager: (514) 440-3612Pager: (514) 440-3612Email: alain.senechal@cn.caEmail: alain.senechal@cn.ca

SAP implementation at SAP implementation at Canadian National RailwayCanadian National RailwayAmericas SAP User Group – Quebec ChapterAmericas SAP User Group – Quebec Chapter

Tuesday March 25Tuesday March 25thth 2003 2003

Who is CN?Who is CN?

One of North America’s largest Class 1 One of North America’s largest Class 1 railroadsrailroads

An innovative, industry-leading An innovative, industry-leading transportation companytransportation company

North America’s only tri-coastal NAFTA North America’s only tri-coastal NAFTA railroadrailroad

Unmatched access to all three NAFTA Unmatched access to all three NAFTA nationsnations

A former Canadian government Crown A former Canadian government Crown Corporation - privatized in 1995 and Corporation - privatized in 1995 and now listed on the NYSE and Toronto now listed on the NYSE and Toronto Stock ExchangeStock Exchange

CN’s Geographical OperationsCN’s Geographical Operations

CN Quick Facts 2002 CN Quick Facts 2002

$6 billion revenues$6 billion revenues $12 billion of assets$12 billion of assets 22,868 employees22,868 employees 17,986 route miles of track 17,986 route miles of track 1,500 locomotives 1,500 locomotives 61,800 railcars61,800 railcars 3 million pieces of signal 3 million pieces of signal

equipmentequipment

SAP Implementations – A 3 Phase SAP Implementations – A 3 Phase approachapproach

IC RolloutIntranet

RequisitioningIC Field Inventory

CN Management Employee

InformationCompensation &

SuccessionTime & Gross

Payroll

General Ledger Financial Reporting

Accounts Payable

CN/GT Inventory Requisitioning

Bar CodingPurchasing

IC RolloutProjects System Asset Accounting

Recoverable Billing

PHASE 1

Procurement CardsExpense (OCS)

Travel Booking (Pilot Sept 14)

Field Inventory/Rail ShopInventory Management

PHASE 2 PHASE 3October 1999

Workforce Planning/QualificationsEmployee Self-Service

Employee Health & Safety

Net PayrollCanadian & US Benefits

US RolloutAll Unionized Employees

Time Reporting

January 2001 April 22, 2002

Mobile Assets (Loco/Car)

Work Equipment Main Shops (Transcona)

Business Warehouse (Sept 9, 2001)

Budget Planning (Sept 24, 2001)

SupplyManagement

BPS/BWFinance

HumanResources

Mechanical

EngineeringNetwork AssetsS&C Configuration Mgmt

Scope of each phaseScope of each phase Phase I: go-live Oct 1999 Phase I: go-live Oct 1999

• FI: G/L, A/P, Financial Reporting (using FI: G/L, A/P, Financial Reporting (using SPL for Regulatory Reporting)SPL for Regulatory Reporting)

• MM: purchasing & inventory mgmt MM: purchasing & inventory mgmt (Canada only)(Canada only)

• HR: management admin & payrollHR: management admin & payroll Phase II: go-live January 2001Phase II: go-live January 2001

• FI: capital, project mgmt, FI: capital, project mgmt, recoverables (Non Freight Billing)recoverables (Non Freight Billing)

• MM: purchasing & inventory mgmt MM: purchasing & inventory mgmt (US), eProcurement (ARIBA)(US), eProcurement (ARIBA)

• HR: union admin and payroll, time HR: union admin and payroll, time keepingkeeping

Phase III: go-live April 29, 2002Phase III: go-live April 29, 2002• Plant Maintenance:Plant Maintenance:

• Rail cars and locomotivesRail cars and locomotives• Rail network assetsRail network assets• Facility maintenance (one Facility maintenance (one

location)location)• Employee qualificationsEmployee qualifications• Gross-to-net payrollGross-to-net payroll• Travel expensesTravel expenses• EH&S (Risk Management)EH&S (Risk Management)

Scope of each phase Scope of each phase (Cont’d)(Cont’d)

SAP Quick FactsSAP Quick Facts

27,000 SAP/ESS users27,000 SAP/ESS users 9,000 SAP users9,000 SAP users HP/Unix on OracleHP/Unix on Oracle

Business Warehouse (BW)Business Warehouse (BW)

Used for SAP financial data used in Used for SAP financial data used in budgeting, forecasting, Projects and budgeting, forecasting, Projects and recoverable expense accounting recoverable expense accounting

Budgeting at CN is currently done Budgeting at CN is currently done using a tool called Business Planning using a tool called Business Planning & Simulation (BPS) within SEM & Simulation (BPS) within SEM (Strategic (Strategic Enterprise Management) Enterprise Management)

Currently Upgrading SAP BW to Currently Upgrading SAP BW to version 3.0B and SEM to version version 3.0B and SEM to version 3.1B. 3.1B.

Next cubes to be deployed are A/P Next cubes to be deployed are A/P for Spend Management and HR for for Spend Management and HR for labor relationslabor relations

WHAT’S AHEAD?WHAT’S AHEAD? Integrating Fuel ConsumptionsIntegrating Fuel Consumptions Implementing Service PO moduleImplementing Service PO module Expand scope of Natural Language Expand scope of Natural Language

Understanding (NLU) applications to Understanding (NLU) applications to facilitate SAP front-end inputfacilitate SAP front-end input

Implement and expand SAP workflow links Implement and expand SAP workflow links with Lotus Notes, email, fax, documents, with Lotus Notes, email, fax, documents, forms and SAP transactions with a forms and SAP transactions with a document management solutiondocument management solution

SAP no longer supports the CIV invoice SAP no longer supports the CIV invoice validation module and the migration to LIV validation module and the migration to LIV is required in order to maintain a stable is required in order to maintain a stable platform for invoice processingplatform for invoice processing