Totalline Transport Case Solution
Root Cause Analysis:
Totallineâ€™s main root cause problem is the late of carrier trucks at the time of delivery to Electronics Internationalâ€™s warehouse, this cause the delivery of goods to Electronics International more than thirty minutes late, this late delivery of goods result in late appointment fees charged by Electronics International.
The second problem for Totalline transport is the time of drivers being wasted on the waiting for their turn to offload the goods of Electronics International. This idleness of the drivers result in significant opportunity costs for example; the waiting time of driver can be used in delivery to elsewhere and the truck if not detained can be sent for delivery to other customer.
And finally Totalline receive detention fees from Electronics International on the detention of trucks and drivers at the warehouse of Electronics International. The3 problem is that this detention fees from Electronics International makes the expenses of the delivery service more expensive and very critical for the top management of Electronics International, who have raised concerns on the detention fees expenses of the company.
The consequences of the problems are the late appointment fees paid by Totalline Company to Electronics International as the carriers cannot meet the schedule given by Electronics International due to the high traffic at the ware house of Electronics International and not any dedicated doors for Totalline Company. The fees expense was $7000 in last month.
Second consequence of the issue is the detention fee paid to the drivers of the carriers this make the expenses of shipment more expensive for Electronics International as the company pays $200 per delivery already on the other hand detention fees makes the expense 200 plus.
Option # 1: Dedicated Doors
The first option of Eacock was to ask Electronics International for two dedicated doors in the companyâ€™s warehouse. Following are the pros and cons of the option:
Pros:Â Totalline could then notify to Electronics International and make the delivery next day.
Cons: The schedule given by the management of Electronics International to Totalline for using the dedicated doors may not doable for the Totalline as the trucks and drivers may not be available for the delivery to Electronics International.
Option # 2: Stickers to Be Applied at Consolidation Point
The second option of Eacoak is to ask Electronics International to send the pick packing stickers to Totalline consolidation point so that the staff members will apply the pick packing stickers on the boxes, which are to be delivered to the Electronics International.
Pros: This will not reduce the detention level or the traffic at the Electronics Internationalâ€™s warehouse however; it is projected that the two hours of Electronics Internationalâ€™s employees will be saved if the stickers are applied by the employees of Totalline. This will also decrease the labor costs of Electronics International and improve the flow of traffic at warehouse, which would result in savings of the detention costs paid by Electronics International…………….
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