BlueStar Office Supply Company
The five top carriers in for the company indicating the highest amount spent are
CRSE where $3514785.61 is spent, ODFL spending $1772151.4, WSKT spending $1296537.72, CRCR $932470.72, and PYLE where $708318.96 is spent
a) The top five origin destination pairs for shipments based on total spent on the route
• Ft Wayne-Flowery Branch 423538.18
• Atlanta-Cranbury 360243.25
• Painesville-Hamilton 231435.27
• Atlanta-Neenah 228511.86
• Atlanta-Rancho Cucamonga 218651.42
The lists for the top origin destination are not the same. The reason for the disparity arises from poor routing techniques employed by the firm. The firm allocated more carriers to destinations that are not productive leaving production destinations with few carriers.
Forty-five carriers serve the top destination pairs. The areas have the highest amount spent over a period of one year and poses significant risk to the transport company. To reduce the risk associated with the large concentration of carriers in the top five destinations, the company should ensure that they are able to maintain the optimum load per vehicle during transportation by installing excellent customer service, which includes ensuring that goods damaged in transit are reduced to boost trust and retain customers.
The transport company should also ensure that they keep the transportation cost down. The company needs to identify fuel suppliers who will give them fuel discounts owing to the large number of trucks consuming the fuel. The firm should ensure that the trucks are kept in good operating conditions to minimize delays from accidents or mechanical failure.
Average shipment size for and miles for each carrier are shown in the table below
Carrier Average weight Average distance
AIR 370265.3333 84711.4
TL 5222272.967 133070.8667
LTL 3931154.44 311464.08
SP 1983.2 15703
Table 1. Chart showing the average weight and distance covered by the four carriers
From the table, TL carrier covers a smaller distance compared to LTL carrier of the carrier but transports the biggest weight of commodities over the distance. This indicates that LTL carrier is taking up a larger share of the cost for smaller workload. Furthermore, the SP carrier covers a larger average distance but delivers lower weight of commodities to the clients. As a result, the transport manager for Blue Star should re-route the carriers and deploy them to the most productive areas. Also, the firm should ensure that trucks operating below capacity should not increase their operating costs.
The mean for goods delivered on time, delivered complete or damaged, and correctly billed items for all carriers.
Carrier Average On time Average delivered complete Average delivered damaged Average billed correctly
AIR 111.6 134.8 130.6 7.4
LTL 538.36 653.22 625 578.16
SP 14.2 15 14.4 11.2
TL 278.0333333 304.2666667 295.5 273.6666667
Table 2. Table showing the average performance for the carriers
Question 5 a
The firm should reroute some of the vehicles that they use to transport goods for their clients.
Question 5 b
From the table it is apparent that not all the carriers are achieving the required benchmark for quality service making the transport company performs poorly in the market. As a result, the firm should ensure that they streamline their services by ensuring they have in place qualified customer service staff who will uphold the highest standards of service delivery. The firm should also use technology to manage their fleet to ensure that goods are delivered to their clients on time. Further Blue Star should ensure that they put in place a billing system that will automatically checks goods that are not billed and relay the information to the firm. Regarding damaged goods, the firm should ensure that they do not transport goods that were already damaged but if they find that the issue arises from their staff, the firm should invest in correct goods handling and transporting equipments and ensure that their staff are well trained to handle all types of goods.
Blue Star Transport Company can still save on costs. The firm should ensure that all the carriers in operation are not more than the amount of business available to the company at any given time. The firm should ground trucks that are not in use when business is low to reduce the operating costs. Furthermore, the firm should ensure that the staff employed in various capacities for the firm are well trained and productive so as the company does not lose their investments due to errors arising from poor work standards.