Hardee Transportation im O\' carrier), received one of Hardee\'s largest custome

Question

Hardee Transportation im O' carrier), received one of Hardee's largest customers. Brien, operations manager for Hardee Transportation (a Class I truckload a phone call from Stacey Holmgren, the vice president of logistics of n involved with our largest retail customer in a number of n involving inventories, forecasting, and planning. We've come to reali ew ini Jim, we've been tiatives i we are missing a critical link in making our initiative s work: our carrier base. We have shared forecasts, invested in technology, and formed joint planning teams to help us maximize our manufacturing capacity while minimizing stock-outs at retail. However we realized that all of these efforts are not going to work unless we coordinate this its movements between our facilities and our customer's distribution are going to need you to start moving in this direction with us. It will require a change in the way you do business with us. And, by the way, it's probably en going to require some investment on your part." t sure exactly what this meant for Hardee. Hardee Transportation is a major truckload motor carrier servicing the North American market. It has 12 dispatch centers in the United States and has partnerships with truckload carriers in Mexico and Canada. For certain customers, like Stacey, Hardee maintains trailer pools at their distribution centers based on contract agreements. Their dispatch operations rely on customer requests for product movement. This reactive position is not optimum for Hardee, but it is how they have done business for 75 years. Their tractors use Qualcomm satellite tech nology and they are linked to their arge customers through electronic data interchange They currently are not using the Internet for transaction management. Over the past few years, Jim has noticed that customers have required even higher service levels than in the past. Adding to this is the customers' constant pressure on prices, Hardee's operating ratio overall is currently 96%, so they don't have a lot of room for future price reductions. In fact, this is not in agreement with Hardee's operating

Explanation / Answer

My suggestions to Jim would be:

- start using internet for transaction management, since now a days everything is about the ease of getting things done for the costumer, this becomes a really important factor to maintain the existing once and attract the new once.

- as far as the costs are concerned keep it competitive in the market, but provide se additional value to the costumers so they are loyal to you. People are willing to pay if they find a service worth the money.

- it is important to update yourself from time to time, if these investments costs are not borne at regular times, you might end up loosing your valuable costumers or the market is competitive and if you are not provide them a great experience, they will choose someone else for it.

Jim can convey this to Hardee, by the following:

- firstly research what are the changes which are to be brought to the organisation, in order to make it the best in the market. He can talk to Stacey and other such major clients, as to what are their requirements and expectations from the organisation.

- after the entire research, prepare a proper plan in firm of report or presentation, include the costs required and the returns it will generate also make sure you include if this is not done how the business will suffer.

- then try and explain Hardee about the entire senario, with the facts and figures, to make sure he understands and acts accordingly.

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