Jimmy Diaz mkt/438 jun 16,2014
Dr.Dool
A budget for Huffman trucking
New Services provided by Huffman Trucking in order to keep up with the competition will need a budget in marketing, hiring, and new ERP system. Allocations will be necessary to increase competition and overcome economic slowdown. Providing the following services same day delivery, warehousing, and the ERP communications were you can track and place orders online and over the phone. Same day deliveries can be placed with a 12 hour window time. Customers will be willing to pay a little more to receive the items they need for their customers. Warehousing will provide inventory tracking and consultation with its customers’ needs. The warehouse will have access to data on pick-ups and deliveries. A with assumptions on cost will have to be made in order to analyze further inquires of the new strategy. Consider will you will spend on expenses of new strategy will inflate too. Current operating cost fuel expenses, taxes, insurance, employee benefits and depreciation of equipment including new equipment has to be considered. The warehouse is a separate cost and running it will need new employees which will add to the Human resources budget. Training and drug testing for specialize division will also be needed. In increase of the marketing budget which will help with promoting the new service and picking the message including the frequency the message will be delivered. The existing sales force will need information on the service to target new customers; an increase of commission will be added to their salary. The ERP will be installed thru the IT department which will save $200,000 in expenses and efficiency. The new strategy can see increases thru the warehousing and consulting programs.