Case Study 3.1: Knight in Shining Trucks

1.    What where the inefficiencies at Knight before fleet-View was installed?

Ans:

The Knight Transportation Inc, was not efficiently make use of their trailers and trucks in instance, the company do not have the exact location of its empty trucks or trailer so what will happen they tend to send an emptied trucks or trailer to travel long distance to pick-up some cargo while there is an available trailer or trucks much closer to the location. The company also spent at least an hour just to find empty trailers to be use, so imagine the time waste each day. The other inefficiencies also is that since they got a lot of trailers to monitor they tend to send their trailers in wrong location. Before fleet-view was installed they lost 2.2 million dollars from several trucks because the cargo they carrying was rob or stolen because they have no safety features installed in their trucks to alarm the driver of the possible robbery. Tracking also the entire trailers was also a problem because they don’t have a exact location of its trucks and what was carrying by the trucks. They also spent too much fuel because of the unnecessary route travelled by their trucks.

2. What information do managers have now that they did not have before?

Ans:

After installing the Fleet-View information system, managers now have an accurate location of its trailers and information of its cargo in a click of a button. The managers now can easily determine which trailer is empty and which is not. Managers can now determine if their drivers stop more often than the necessary stops needed. Since, the Fleet-view also send the trailers current performance such as fuel level and air-pressure so the can able to inform the driver to make necessary stops to take care of their trucks. Also, the system send information if the door of the trailer is open or not to alert the driver for possible robbery and now managers can dispatch their trucks in more efficient routes.

3. What are the indicators for greater efficiency at Knight Transportation now?

The company is trying to reduce the ratio of trailers to trucks from 3 to 1.  After installation of the Fleet-View, now the ratio of trailers to trucks is now 2.3 to 1 compared to 4.4 to 1 in 2002. In this industry, this is a significant indicator of efficiency which is now the company enjoyed an 11 percent profit. Aside from this, the company was able to saved at least 1 million dollars worth of fuel because of efficient routes during cargo deliveries.

4. Of the approaches to gaining strategic advantage discussed in this chapter, which one applies to this case?

Ans:

The approach to gaining strategic advantages applies to this case is the resources-based view. The company can able to determine the available resources that can be use or assign much more efficiently. Knowing what trailers or truck to be assign to a job that is much closer to a location where it needs to be thus maximizing the use of its trailers or trucks is company’ advantage over its competitors.

5. Considering the devices and software that Knight uses, can it keep an advantage over competitors for long? Explain why or why not.

Ans:

Yes, because since now the company can able to dispatch their trailers and trucks more efficiently so they can able to save fuel and money and instead spend this money to invest or upgrade their services. Compared to the competitors who are not using such device, they can able to send their cargo the location much efficiently and faster.