Economic Performance

During this business plan cycle, the Finance organization will continue to support the business in identifying important insights with respect to operating practices and other opportunities to achieve a more efficient business. In advancing this goal, new strategies and a new enterprise resource planning tool (ERP) have been implemented to provide meaningful reporting and insights. Through enhanced financial controls enabled by greater insights, we will drive improved financial health and governance in our business.

Over the next three years, we will:

  1. Make improvements in finance strategy and processes

  2. Deliver an operational efficiencies program

  3. Improve procurement processes and systems

  4. Advance digitalization

  5. Enhance internal finance and compliance controls

  • KCS will deliver new financial strategies leveraging driver-based forecasting to facilitate business process and technology improvements. Finance and KCS operational departments will work more collaboratively to understand and align the key drivers of financial performance. This approach will allow KCS to capture new business insights that enhance decision-making for today and the future.

    KCS will collaborate with the MBTA on business partnering strategies for cost optimization and enhanced financial reporting of core contractual and Supplemental Work project costs. The finance organization will also propose new opportunities for growth where we can partner with the MBTA in driving customer value.

  • In this next business plan cycle, KCS will deliver enhanced operational efficiencies programs. As we analyze the impacts of inflation on our business, KCS will develop programs to mitigate the impacts of supply and demand on the goods and services we procure. We will also identify opportunities to streamline business activities to reduce costs, making our business more scalable. The economic efficiencies we achieve will help optimize resources and production to deliver the expected financial results. Those annual programs will be included in the budgeting process and their delivery will be tracked as part as an integral part of the regular financial reporting.

  • The implementation of a new ERP system in 2022 provides new opportunities for our Procure-to-Pay process. The Procure-to-Pay process starts with the sourcing and procuring of goods and services and ends with timely payment to our vendors. Streamlining the procurement process will improve finance and operational productivity, improving responsiveness and visibility for both internal and external business partners. Process and system improvements for managing supplier invoices will ensure timely payment and support supplier development.

    The Procure to pay initiative is being kicked off in 2024 and should be delivering results across 2024 and 2025.

  • In 2024, KCS will implement new business planning software to automate the budgeting process. This software will integrate with PowerBI, providing more visibility into our budgeting and forecasting process. Additionally, we will develop more robust financial dashboards and further automate the KCS visualization room, empowering our managers to drive better business outcomes.

    KCS will also implement a new time and attendance software later in 2024. This software will provide our employees with more efficient time entry and our managers with more real-time data to improve daily decision making.

  • To achieve our 2026 target of having 96% of our procurement spend with partners with whom we have a formal contractual relationship, KCS will implement a direct sourcing strategy that develops supplier relationships, enhances controls, and improves financial performance.

    KCS will also implement additional departmental metrics to monitor compliance with our new policies and processes.

A calendar of action items with a list of specific KPI targets for each section of the plan will be available from the VP of your department and will be in the printed Business Plan booklet available soon.