Hu-Friedy: Evaluating Transportation Alternatives
(5 pages of text)
In August 2016, the global procurement manager at Hu-Friedy Mfg. Co., LLC, a large U.S. dental equipment manufacturer, realized that materials were being transported between suppliers and production facilities without a consistent strategy—potentially costing the company thousands of dollars each year. To evaluate the company's transportation needs, the manager considered a range of alternatives, including buying or leasing a truck or hiring a third-party logistics (3PL) provider to manage the transportation. To complete his analysis, the manager needed to develop a new set of routes for pickups and deliveries, evaluate the costs associated with owning or leasing a truck, determine the costs of a 3PL provider, and ultimately determine the course of action that would have the most impact on transportation costs with the least impact on daily operations.
The case provides students with an understanding of some of the complex challenges businesses face when deciding whether to use a private fleet or outsource its transportation needs. This case is appropriate for general supply chain management courses or logistics courses focused on transportation, at the advanced undergraduate or graduate level. Students will have the opportunity to
- construct a framework to compare costs associated with transportation decisions;
- evaluate fleet management versus outsourced logistics;
- develop a transportation strategy; and
- plan and schedule routes, pickups, and deliveries.
Transportation and Warehousing
United States, Medium, 2016
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