Hardee Transportation Case Study 5-1
Case Study 5-1 Hardee Transportation
Student Name
TLMT311, American Military University
Professor
August 16, 2012
Hardee Transportation Case Study
Issues: Hardee Freight Transportation pickup and delivery (PUD) customers have implemented new hours for their drivers, limiting each driver to a 14 hour duty day. The biggest issue is that Hardee’s fright lanes has its hands full with requests from the largest customer, and customer pickup and delivery (PUD) operations are set to reflect the previews 10 hours of maximum drive time.
Analysis of Alternatives: Hardee Freight Transportation has three choices in order to cope with changes of the new operating hours. One option would be to reorganized peddle runs in order to better utilized the new driving hours and optimized use of bobtails, reducing stem time which is “a nonrevenue –producing time because no shipments are handle” (Coyle, Novack, Gibson, & Bardi, 2011, p. 174). Some of Hardee’s customers require the driver to bobtail to their shipping location which is a waste time and money. If Hardee reorganized peddle runs in order to schedule the empty bobtails to move cargo, Hardee would be able to meet the demand of more customers and see an increase in revenue. A second option would be for Hardee to require shippers to reduce loading and unloading time “since driver waiting time is no longer counted ass off-duty time, but rather part of the driver’s work day” (Coyle et al., 2011, p. 181). If this option is implemented, shippers would have to rearrange the lay-out of the site and/or acquire more adequate equipment. Such rearrangement could be beneficial for both Hardee and the shippers since cargo may be able to be processed faster, allowing drivers to increase paddle time resulting in more revenue for Hardee and cheaper rates its customers. The third option is to increase detention rates for all customers unwilling or incapable of expediting the loading and unloading of cargo.
Student Name
TLMT311, American Military University
Professor
August 16, 2012
Hardee Transportation Case Study
Issues: Hardee Freight Transportation pickup and delivery (PUD) customers have implemented new hours for their drivers, limiting each driver to a 14 hour duty day. The biggest issue is that Hardee’s fright lanes has its hands full with requests from the largest customer, and customer pickup and delivery (PUD) operations are set to reflect the previews 10 hours of maximum drive time.
Analysis of Alternatives: Hardee Freight Transportation has three choices in order to cope with changes of the new operating hours. One option would be to reorganized peddle runs in order to better utilized the new driving hours and optimized use of bobtails, reducing stem time which is “a nonrevenue –producing time because no shipments are handle” (Coyle, Novack, Gibson, & Bardi, 2011, p. 174). Some of Hardee’s customers require the driver to bobtail to their shipping location which is a waste time and money. If Hardee reorganized peddle runs in order to schedule the empty bobtails to move cargo, Hardee would be able to meet the demand of more customers and see an increase in revenue. A second option would be for Hardee to require shippers to reduce loading and unloading time “since driver waiting time is no longer counted ass off-duty time, but rather part of the driver’s work day” (Coyle et al., 2011, p. 181). If this option is implemented, shippers would have to rearrange the lay-out of the site and/or acquire more adequate equipment. Such rearrangement could be beneficial for both Hardee and the shippers since cargo may be able to be processed faster, allowing drivers to increase paddle time resulting in more revenue for Hardee and cheaper rates its customers. The third option is to increase detention rates for all customers unwilling or incapable of expediting the loading and unloading of cargo.
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. Appendix CASE QUESTIONS 1. Using the information in this chapter, how would you tell Jim to proceed? I would recommend Jim to look into rearranging his delivery network in order to improve current operational routes and reduce bobtailing to shipper’s location. I would also recommend he work closely with shippers in order to set the amount of time allotted for uploading and uploading cargo, and set a detention charge if the time is not met. Finally, I would suggest Jim to offer lower rates to shippers that can provide faster uploading and downloading operations. Perfect!I enjoyed reading your analysis of possible alternatives. Another alternative would be to discuss this situation with other carriers. Without discussing price, inquiries should be made to other carriers either directly or through a trade association to determine what the industry is doing. Good work! Rubric values (please cross reference with the rubric located under resources): 5-5-5-45-15-10-10-5 = 100