BUSINESS PLAN-TRUCKING BUSINESS Harvard Case Solution & Analysis

Business plan-trucking business Case Study Solution 

Introduction:

ABC Company is a private trucking transportation organization, owned by a family. It transports coal to the mining industries. It came into being in July, 2017. But because of having no business plan, it could not settle in the market and could not compete with its strong competitors. The owner of the organization, Mr. Zed shut it down in October, 2017 because of lack of business management, and no proper plan and now is considering to start-up again but after making a proper business plan and considering each and every strategy that the company is going to use and that would help it to generate revenues and to compete with the already existing companies in this market.

The company currently owns 7 trucks, that are in a good condition as well, because of not being used much, and the total numbers of employees were 20, including all the drivers and other staff managing the finances and other, out of which a 10-12 are willing to join back.

To start-up again, the first thing that the organization needs would be to hire more loyal employees, who wouldn’t run at the time of crisis. Secondly, to get in contact with engine and trailer manufacturers and to contact the government to provide certain allowances to support their business in any way possible, because eventually it will boost the economy of the country.

Role of Quality Management in the Supply Chain of an Organization:

Over the past years, it can be seen that the companies and different organizations have realized the importance of supply chain management and what impact it can have on its growth. But still the importance of quality management is not understood by the companies. Though there are many articles and reports that have discussed its impact but most of the companies have no idea as in how to approach and handle the issues and difficulties related to the management of quality. (J.Robinson, 2015)

 

Any company needs to make sure that it gives the due importance to the quality of its products. ABC Company can develop a Management Operating System (MOS) in to ensure that the quality is well-maintained. MOS had following key factors:

  • Delivery on-time
  • Rate of Scrap
  • Cycle time to resolve the complains of its clients
  • Assessment of the quality of machine parts, supplied by the respective suppliers (Hafeez, 2017)

Supply Chain Quality Management (SCQM) is connected to the strategy of participation and selection of the supplier and this affects the results that the business produces and the level of satisfaction of its customers as well. So, for ABC Company it is important to strategically evaluate its quality management of supply chain to before starting up again. (ChinhoLin, 2005)

The quality management of the supply chain basically refers to the quality of the products that the company is selling, in the case of ABC, it is just transporting the coal, for it the quality of its truck is what matters the most, because its whole business depends upon transportation and for that it needs to ensure that it has the best trucks with the best quality.

To improve the quality, following listed steps can be taken by the ABC Company:

  • Defective machinery parts
  • External Failure
  • Inspection
  • Toxic Material

1.      Defective Machinery Parts:

For ABC Company it is important to insure that the trucks that it is using to transport are in the best state. Not only they should look well-maintained but also their engines should be well-maintained. If the engine is not good then its whole business would crash down no matter what. It needs to buy the best engine parts or any other part on the time of requirement; else inferior parts would also require extra maintenance and that would increase the cost too. Secondly the possible chance for inferior parts is that they would expire early as well. So for ABC Company, that already had a bad start it is important to make sure that their engines and trucks are in the best possible condition.

2.      External Failure:

The poor quality of supply chain would result in the external failure as well the drivers, seeing the poor quality of trucks and the problems they would face because of the breakdown of the engines can get irritated and leave the job.  The more control ABC Company has over its supplies of engine parts and other parts of trucks, the less risk there is of the failure.

3.      Inspection:

An inspection should be done to analyze that what the main reason behind its failure was before. As mentioned earlier the ABC Company couldn’t sustain before. One reason could be because the trucks it acquired from another company were not brand new but already in a bad condition, that resulted in delays in transportation and in the result the image of the company was ruined in the starting and it started getting less transportation orders.

4.      Toxic Material:

Quality Management also considers the use of toxic materials and what the company has planned to do to protect its employees from any incident. The usage of petrol is obvious in transportation business, to make sure that certain measures are taken for protection in any case of incident is also important. (DeBenedetti, 2017)..................

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