1.
What
where the inefficiencies at Knight before fleet-View was installed?
Ans:
The Knight Transportation Inc, was
not efficiently make use of their trailers and trucks in instance, the company
do not have the exact location of its empty trucks or trailer so what will
happen they tend to send an emptied trucks or trailer to travel long distance to
pick-up some cargo while there is an available trailer or trucks much closer to
the location. The company also spent at least an hour just to find empty
trailers to be use, so imagine the time waste each day. The other
inefficiencies also is that since they got a lot of trailers to monitor they
tend to send their trailers in wrong location. Before fleet-view was installed
they lost 2.2 million dollars from several trucks because the cargo they
carrying was rob or stolen because they have no safety features installed in
their trucks to alarm the driver of the possible robbery. Tracking also the
entire trailers was also a problem because they don’t have a exact location of
its trucks and what was carrying by the trucks. They also spent too much fuel
because of the unnecessary route travelled by their trucks.
- What information do managers have now that they did not have before?
Ans:
After installing the Fleet-View
information system, managers now have an accurate location of its trailers and
information of its cargo in a click of a button. The managers now can easily
determine which trailer is empty and which is not. Managers can now determine
if their drivers stop more often than the necessary stops needed. Since, the
Fleet-view also send the trailers current performance such as fuel level and
air-pressure so the can able to inform the driver to make necessary stops to
take care of their trucks. Also, the system send information if the door of the
trailer is open or not to alert the driver for possible robbery and now
managers can dispatch their trucks in more efficient routes.
- What are the indicators for greater efficiency at Knight Transportation now?
The company is trying to reduce the
ratio of trailers to trucks from 3 to 1. After installation of the Fleet-View, now the
ratio of trailers to trucks is now 2.3 to 1 compared to 4.4 to 1 in 2002. In
this industry, this is a significant indicator of efficiency which is now the
company enjoyed an 11 percent profit. Aside from this, the company was able to
saved at least 1 million dollars worth of fuel because of efficient routes
during cargo deliveries.
- Of the approaches to gaining strategic advantage discussed in this chapter, which one applies to this case?
Ans:
The approach to gaining strategic
advantages applies to this case is the resources-based view. The company can
able to determine the available resources that can be use or assign much more
efficiently. Knowing what trailers or truck to be assign to a job that is much
closer to a location where it needs to be thus maximizing the use of its
trailers or trucks is company’ advantage over its competitors.
- Considering the devices and software that Knight uses, can it keep an advantage over competitors for long? Explain why or why not.
Ans:
Yes, because since now the company
can able to dispatch their trailers and trucks more efficiently so they can
able to save fuel and money and instead spend this money to invest or upgrade
their services. Compared to the competitors who are not using such device, they
can able to send their cargo the location much efficiently and faster.
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