Question

• Whipple Logistics Company’s Transportation Challenge

  Ruby Shelton is part of the executive development training program. As part of her executive development plan, Ruby has temporarily been assigned to the transportation division of Whipple Logistics Company. The objective is to expose her to different parts of the company as a method of grooming her for a senior position someday.

  Ruby is excited about the opportunity. Her background is in operations management, therefore, she is familiar with transportation requirements, although not an expert. Doreen Delgado is Ruby’s mentor in the program. Doreen is a senior vice president and participated in the program when she was a junior executive. She understands the value of such a learning experience.

  Whipple Logistics Company has several new clients who want a briefing on the best mode of transportation for their businesses. Doreen assigned Ruby to this project. Doreen believes this is the perfect instrument to help Ruby develop a deep appreciation of the importance of selecting the best mode of transportation for specific products. Ruby is to prepare the briefing for the new clients.

  Ruby understands that this is a great opportunity to learn more about Whipple’s clients’ needs. Her research illustrates that the best mode of transportation often depends on the industry using it. Industries that deal with bulk products such as corn, soybeans, wheat, cement, crude oil, and coal must decide which mode of transportation is best. That decision is often based on the distance over which the shipment must be moved. Trucks have a cost advantage for short distances up to 500 miles; consequently, they function primarily as the short haul option. As the distance increases, rail has a cost advantage over trucks; however, barges have the greatest cost advantage if a waterway connects the point of origin and the destination.

  Although Whipple Logistics Company provides shipping services to all industries, the new clients were primarily shipping large bulk items. For bulk shipments barges are the least expensive mode of transportation. However, waterways do not go everywhere; consequently, the critical factors are the shipment origin and its proximity to navigable waterways.

  Ruby began to investigate what besides cost could be a driving factor. She discovered that seldom were single barges alone used to haul cargo. Generally, barges are cabled together in what is called a 15-barge tow, giving it a capacity of 22,500 tons. Ruby wondered how this compared to the capacity of rail and trucks. She knew that rail cars are also connected together to increase capacity. The standard is a 100-car train whose hauling capacity is 11,200 tons; thus, it takes two 100-car trains to match a 15-barge tow. A third option is semi trucks or “18-wheelers.” A single semi truck can haul 26 tons. Unfortunately, the drawback of semi trucks is they are a single shipping system, unlike barges or rail cars that are combined to create a larger shipping system. Approximately 870 semi trucks would be required to equal the cargo capacity of either a 15-barge tow or two 100-car trains.

  Ruby decided that barges are the best bulk transportation option if the origin and destination can be accessed by water. She appreciated that it was more complex than just cost though. One needs to factor in possible delays due to weather and the hauling capacity of a specific mode of transportation.

Discussion Questions

1. How should Ruby approach this briefing? Should she explain each type or should she discuss only the concept of intermodal transportation? Explain your recommendation; why do you think one approach is better than another, that is, what is the benefit to those being briefed?

2. In your opinion, which mode of transportation has the most potential for problems? Explain why you say that.

3. Identify the mode of transportation that is the most flexible and the one that is the least flexible. Explain why you consider them as the most and least flexible.

Answer 1

How should Ruby approach this briefing? Should she explain each type or should she discuss only the concept of intermodal transportation?

This is how Ruby should approach this briefing :

• Ruby should approach the briefing by highlighting the fact that that the degree of efficiency in the mode of transportation for an industry largely depends on the industry and the nature of products or goods that the company intends to ship.

• Then she should begin by explaining the advantages and disadvantages of al three available modes of transportations, namely, barges, trains and trucks ., along with their pricing, speed of delivery. tonnage efficiency and availability or service levels in order to determine the feasibility.

• Then Ruby should let the client decide what do they want to prioritise, whether it's pricing, speed of delivery. tonnage efficiency and availability or service levels. While Ruby can assist with recommendations, it's best to let the client prioritise what's more important. Because price isn't the only deciding factor when it comes to shipping.

• Once the client prioritises their logistical needs based on their business requirements, Ruby can make a choice which blends multiple modes of logistics and shipping to achieve an efficient delivery system.

• She should explain and pros and cons of each type of transportation

Explain your recommendation; why do you think one approach is better than another, that is, what is the benefit to those being briefed? In your opinion, which mode of transportation has the most potential for problems? Explain why you say that. Identify the mode of transportation that is the most flexible and the one that is the least flexible. Explain why you consider them as the most and least flexible.

Here's the Given Data

The new clients were primarily shipping large bulk items

15-barge have a capacity of 22,500 tons

100-car train have a hauling capacity is 11,200 tons

Two 100-car have the same tonnage as a 15-barge tow

870 semi trucks have the same tonnage as aeither a 15-barge tow or two 100-car trains

Barges : Have the maximum potential for problems and are the least flexible

So it's quite evident that barges are the most efficient system of bulk transportation. However water ways do not Extend to all locations. Hence railway are the next most efficient mode of cross country transportation. While trucks are the next best mode of transportation of interstate and last mile delivery transportation. In my opinions sarges as a mode of transportation have the most potential for problems because they do not offer last mile delivery, they do not extend to all locations, and there are a limited number of barges and they may not be available at all times. This could seriously hamper logistics. Which is also why they are the least flexible mode of transportation.

Trucks are the most flexible mode of transportation

The reason why trucks are the most flexible mode of transportation is due to their availability and reach. There are multiple vendors who operate trucking companies, which means that they have high service levels dn availability at all times. They're not restricted by waterways and do not have the limitations of rail roads. They're also capable of cross country as well as last mile delivery. Which is why they're the most flexible mode of transportation.