How to Proceed with Customer Demands and Profitability: A Case Question Analysis

Case question: using the information in this chapter, how would you tell Jim to proceed? Using the information in the chapter, I agree with Jim O'Brien. Although getting large customers is important, making money is also important. Jim has a plan to require their customers to reduce loading and unloading times. If they cannot reduce their time, Harder Transportation has no choice but to either increase detention charges or consider dropping those customers. The sales organizations think these actions are against Harden's service strategy and they think some customers may even rebel.

Some of Jim O'Brien largest customers have very long pick up and drop Off times. TO be successful Jim should make sure that their peddle run is correct. A peddle run is a route driven daily out of the pick up and drop off terminal to collect freight for outbound or inbound moves. Two elements of the peddle run is its stem time and peddle time. Stem time is the time that occurs when the driver leaves the terminal until the driver makes the first pick up or delivery. Peddle time is the time during which drivers is actually involved in the pickup and delivery of freight.

The wall would tell Jim O'Brien to proceed is he could go to the two driver system. While one driver is driving the other is in the sleeper berth of the tractor. The sleeper team has been very successful. Having more than one driver may even reduce to loading and unloading times. That is a great concern for Jim, because some of his largest customers have long pickup and drop off times. The sleeper teams also could potentially reduce driver fatigue and fewer accidents. They have new driving hours so it will help. The sleeper system would also reduce driving time.

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Another way Jim could proceed is he could compromise with his sales organization and his customers. Jim could make sure his peddle run is correct. Jim could compromise by reducing the stem time. If you decrease the stem time, you would increase the peddle time. The drivers would then spend less time driving. They would spend less time picking up and dropping off. The drivers would increase the productivity. Overall Jim O'Brien should do what is best for Harder Transportation. If some customers rebel then Jim is going to need new customers.

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