Hardee Transportation Case Study

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Topics: Money, Customer
Hardee Transportation Case Study Jim O’Brien, the manager of the Hardee Transportation. He is concerned about a new request from his largest customers which has caused conflict. The new rule limits the pickup and delivery time to 10 hours maximum for each driver. The dispatch centers and bobtail patterns are also set to reflect the same operation hours. But Hardee’s customers suggest that the PUD hours need to increase to 14 hours to better fulfill the demand. Jim disagrees, because most of his customers already have the longest PUD time. Jim proposes his sales team, either have the customer increase the detention charges or consider dropping the customers. However, the sales team is against Jim’s proposal due to the potential of revenue loss and future customers. One of the possible solutions is to take Jim’s suggestion, having the customers to reduce their loading or unloading time; also, the company can provide their own employees and equipment to load or unload the material, so the drivers can get on the road quicker. If customers are willing to do that, it will benefit for both sides. They can also negotiate new prices for that. The customers receive their services on time with discount price, and the transportation company does not have to break the 10 hours driving rule without dropping any customer. Second solutions is to re-assign the routes. Traffic is a big problem on the highway or local, especially when in rush hour. In some states, they have restrictions on those big trucks, such as not drive on the fast lane. Those issues can slow down the effectiveness, cause extra time for the drivers and cost extra money for the transportation company. In this case, Hardee may utilizes those shortcuts on the highway, it has less traffic and shorter distance. The only disadvantage is the motor carriers have to pay the toll fee, may cost extra money. To make new driving schedule is another solution. The manager can make a new driving schedule


References: Coyle, J.J., Novack, R. A., Gibson, B.J., & Bardi, E. J. (2011). Transportation: A Supply Chain Perspective, 7th edition, South Western College Publishing

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