Totalline Transport Case Solution

2. Issues Identification

Totalline is facing problem of getting charged because of late appointments. These late appointments are of great concern as they are increasing, and Totalline was charged with almost $7000 within one month. The major problem in getting charged is time of unload. Even if the truck is arriving within the time and waiting for trucks to unload, still they will be charged with detention fee. This detention fees are lower, but it still represents a major cost, primarily because of excess of happenings of the events. This problem arises due to the difference in unloading time between products. It takes more time to unload a complex product and a product requiring careful handling. In other words, there is no differentiation in the time required in handling of the products. This industry is competing on cost differentiation while Totalline is facing an increase in cost primarily due to delivery problems. Addition to this, there is an increase in the competitive environment, the competition is not lacking very far behind in term of losses or late deliveries. Competition is building upon technology and innovation to compete. Whilst, many of competitors are strong and backed up by strong resources, within this cut throat competition, Totalline has some communication gap with the business partners or suppliers and retailers.

3. Environmental and Root Cause Analysis

Totalline is operating in a competitive environment. This industry plays a significant part in the economy with its contribution of 45 billion and jobs to almost 40,000 people. Major part of the revenue is earned through transfers through trucks, almost 90% of the transportation. Totalline has a great history of achievement and excellence. However, the competition is growing this industry is filled up with the player and can witness the presence of numerous private and for hire firms. One can say, this industry is filled up with competition, and mostly companies fighting on the basis of cost. Because of such an intense competition, the suppliers and retailer has a great bargaining power. Utilizing that power, they are able to charge the carriers on late deliveries, especially Electronic International, which has banned some of the carriers and other carries are put on the preferred list. This provides the insights about power of retailers and suppliers, as industry is filled up with players and suppliers and retailers have many choices. As a result of strict competition, there are strict deliveries and cost schedules and carriers are taken as per filling these schedules.

Many of the suppliers want to focus on their own core competencies and as a result of that they want to outsource the supply chain specially warehousing facilities. In order to capitalize on this opportunity, third party logistic has come into play. These logistics were rapidly recognized because of their large pool of facilities.

Totalline has outperformed many of these competitors because of application of its differentiation strategy and fulfilling the promises. While many of the competitors were reluctant with the delivery of the technical products, Totalline focused on this segment and fulfilled its promise. Addition to that, it has the lower damaging rates and mostly its trucks were on time, so Totalline was a preferred choice. Addition to that, Totalline has done some ATL and BTL activities for brand recall. However, usually in business to business relations such activities are not important then the performance itself. Where, the hurting costs are defined as one, which are soft like damages, late deliveries etc. In business to business relations, parties work as partners, where they try to save each other cost because they are all interlinked with each other. Totalline is working on this track, and as a result, it’s bearing fruit by becoming a trusted carrier.

4. Alternative or Options

The first option considered sending a request to International Electronics to dedicate two doors to Totalline. This request is viable because, Electronics International plans to expand. Addition to that, Totalline is responsible for 20% of its deliveries. On the other hand, this request is under question because it’s against Electronics’ International policy and there is a lack of communication with Electronic International. This option is also attractive for the Electronic International in perceptive of business to business relation as it provides an opportunity to reduce per unit cost. Addition to that, dedicated doors will allow Totalline to reduce its late appointment and detention fee. Therefore, this option is worth considering.