One of Jim O’Brien customers has presented him with an opportunity for a significant amount of freight moving into a new market for Hardee. Hardee is a truckload carrier primarily moving freight in the East/West market in the United States. Although it has some movements in and out of Canada and Mexico, Hardee has focused on moving freight in eastward and westward directions. Hardee has dispatch centers located throughout the United States, which have some dock capacity.
The new move would be between Pittsburgh and Miami. Hardee has avoided this market because of the lack of backhaul opportunities that exist outbound from Florida. How ever this new move offers a significant increase in volume for Hardee. A complicating factor in this move is the request that Hardee perform sorting and segregation at its dispatch centers. Each shipment will consist of straight ( one product ) pallet loads of various types of consumer goods freight destined for a retailers store locations, then repalletizing into rain bow ( mixed products ) pallets for each store.
Hardee has never experienced this type of request before. Jim knows that he needs to put some type of costs to this move to make sure that the moves are profitable. Because of the large volume involved, not covering Hardees cost in pricing could result in large losses for Hardee.
Write a summary as to what steps for freight moving should hardee take to procceed without any losses? At each step, write out the information you will need – length of time, equipment involved, fuel, labor, etc.