Major Facts Harder Transportation is a Class I truckload carrier with 12 dispatch centers in the United States. They have partnerships with truckload carriers in Mexico and Canada. Their largest customer is taking new initiatives to maximize manufacturing capacity and minimize stock-out at retail. They’ve operated in a reactive position for the last 75 years. Their tractors have Glaucoma Satellite Technology and are linked to their largest customers through DE’. Currently, Harder does not use the internet for renovations management.
Their overall operating ratio is at 96%, not leaving room for future price reductions. Harder maintains excess rolling stock in trailer pools at major customer locations. Trailer to power ratio is 3:1, one of the highest in the industry. II. Major Problems Harder keeps trailer pools at customer locations, relying on customer requests to move product. This reactive approach is not ideal for Harder. Although they use EDI Ninth their largest customers, they are not set up for any transaction management through the internet. Harder does not have any room for price reductions as they re already have a 96% operating ratio.
Obtaining tractors from their dispatch locations to customers are adding additional costs. Harder must change its operating model to reflect current trends, Jim O’Brien, operations manager, has no Idea what this means for Harder. Ill. Possible Solutions A. Harder needs to acquire a Transportation Management System, which can be incorporated with EDI currently used. B. Harder should consider live loading/ unloading to reduce trailer pools at customer locations. C. Dedicated fleets should be considered for large customers, where routes are stable and they will always have odd to backlash.
IV. Choice and Rationale If I were in Jims position I would suggest he consider options A and C. Although live loading and unloading may be acceptable with some large customers, others will not Ant constraints at/involving the dock. If a TM’S is put into place, as well as a dedicated fleet, Jim can assess what routes are the best for each driver(s)/ shipment(s). With a TM’S, Jim can also be sure he can secure a backlash for each run. Rhea dedicated driver(s) can also be employed to work on-site, so they do not have to Incur additional cost obtaining to customer’s distribution centers.
Implementation or implement a TM’S system, Jim will need to find a TM’S provider that operates to give Harder the most for their money. Jim should try to find a TM’S system that can be integrated with their current EDI system. He will need to speak with Stacey Hologram to see if dedicated drivers would be allowed to work on-site, so obtaining can be factored out of the equation, removing those additional costs, which can be applied to technology investments. II. Appendix . Using the information presented in this chapter, what changes would you suggest to Jim?
Jim needs to bring Harden’s operating model into the 21st century and have all transactions online. With a TM’S system he can achieve this as well as devising the best route and securing backlash. Customers will have more transparency into their accounts, and account payable/receivables can post payments and credits quicker. With a dedicated fleet for Hologram, Jim can be sure he retains Harden’s best drivers, allowing them to have a pleasurable experience. Drivers running a dedicated route engage more with dock workers they become familiar with and often like having a familiar route each day. 2.
How would you suggest he present this scenario to the president of Harder? Jim must present this scenario to the president of Harder and explain to him/her that if Harder does not acquire more technology, they will fall back in the market. Customers want the best service, with the most transparency as possible, if Harder does not invest in a TM’S, this is not possible. Also, he must argue the point of a dedicated fleet. Harder will save money with a dedicated fleet, cutting costs and rendering better customer service. They will no longer have to bobtail and backlash can be secured, which will drive costs down.