CASE 4 Trasnportation Strategy

1014 Words Mar 14th, 2015 5 Pages
CASE 4-1

Hardee Transportation (A)
Jim O’Brien has realized for quite some time that some of Hardee’s customers are more profitable than others. This is also quite true for certain freight lanes. However, Hardee has traditionally structured its prices around discounts off their published tariff rates.
Most of the discounts have been based on freight volume only. Jim knows that his drivers and dock people do more for certain customers than move volume; they count freight during loading, sort and segregate freight on the dock, weigh shipments, and do some labeling.
Jim foresees some of the new service demands from his customers being very difficult to cost and price because they won’t necessarily be based on freight volume. Some of these
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and ends at 8:30 p.m. on January 12. It requires unloading the trailer, sorting, and repalletizing the load. This operation requires two dock workers, each working the same trailer for 8 hours in the dispatch center.
The line-haul portion begins with the vehicle being dispatched from the Pittsburgh location at 8:30
p.m. on January 12 and traveling to Charlotte, North Carolina, a distance of 481 miles, and arriving at Charlotte at 7:12 a.m. on January 13. The driver rests from 7:12 a.m. until 3:12 p.m. The trip continues with the vehicle departing Charlotte at 3:12 p.m. on January 13 and traveling to
Jacksonville, Florida, a distance of 399 miles, arriving at Jacksonville at 12:06 a.m. on January 14.
The driver rests from 12:06 a.m. until 10:06 a.m. The line-haul portion concludes with the vehicle departing Jacksonville at 10:06 a.m. and traveling to the customer’s location in Miami, a distance of
369 miles, and arriving at the distribution center at 6:18 p.m. on January 14.
The line-haul driver stays with the vehicle while it is being unloaded (2 hours unload time). The driver then deadheads at 8:18 p.m. from the customer’s distribution center and arrives at a Hardee dispatch center located in Miami at 8:48 p.m., a distance of 15 miles from the distribution center.

CASE QUESTIONS
1. What are the pick-up, sort, line-haul, and delivery costs to Hardee for this move?
2. What is the total cost of this move? Cost per cwt? Cost per revenue mile?
3. If

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