This case presents a scenario where the company is overwhelmed by the issues currently at hand. More concern has been brought into the situation by the increase in the number of driving hours. Initially, there was a maximum drive time of ten hours. These have been increased to fourteen, and there are fears that the resulting problems might greatly affect the company. A stalemate has also developed between the company and its customers. The customers are in support of the new rules while the company does not fully agree with them. The suggested way forward by the owner is not acceptable to the sales organization. They are perceived to be a potential source of low business for the company.
In order to solve this stalemate, the company needs to do a lot to ensure that no business is lost. The aim should be to lock the existing customers as well as device ways to attract new ones. Some of the ways of achieving this objective include:
- Harmonize the customers’ demands with the objectives of the company. From the foregoing; it is clear that the company’s strategy is to provide quality services to customers so as to keep them intact. For this reason, every step that the company takes should comply with this objective. Such a step as dropping customers who do not comply with the new guidelines should not be pursued by the company. Consequently, it will lead to loss of great business, since it will influence the largest customers who have the longest PUD times. It is only under exceptional cases that any customer should be dropped. The company has little choice since dropping a single customer will have great negative impact on its profitability.
- Introduce detention charges. These should be applied on a progressive basis. Customers with more efficient systems will not have long loading and offloading time. They will thus not be affected by the increased retention charges. Only those customers who take long hours to load or offload cargo should be charged. The charges should increase according the used time. However, it should be announced to customers that the step is aimed for making them embrace operational efficiency. The company should be seen in encouraging customers to reduce the time taken in loading and offloading. It should not only wait for them to take long and then come up with the additional charges.
- Introduce flexibility in the company’s operations. This will mainly target the drivers. The company should work on a policy that allows drivers to operate in a flexible way. This can be implemented by having the drivers on call at any moment. This means that the customers’ requests will be received in a superior way. The drivers should also be allowed to go to the customers shipping locations if the necessity arises. Operating in such a flexible way will make the company more efficient, as services will be made readily available.