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ESSAY: Transportation and Logistics

You work as a transportation analyst for Peregrine Trucking Co. The company’s president has asked you to evaluate the potential of reducing fuel cost by using trucking equipment that is more efficient and socially conscious by proposing at least five processes or rules. Be sure to include equipment (tires, efficient engines, etc.), new rigs (tractor/trailer), and fleet operating rules as part of the five. You must also calculate the fuel saving possibilities of each process or rule proposed in reducing fuel costs and assess where savings gained can be used to benefit the company, improve service, and add value. In addition, you must describe how management can track and monitor fuel consumption and delivery patterns. Lastly, you must recommend a focus of the fuel cost savings plan that utilizes all resources available to the company. This report must be delivered on time to the company president (your course instructor).

As an analyst, you should evaluate all resources available. Consider using the Smart Way webpage (see recommended websites), Instructor Guidance, the course textbook, library resources and additional sources to support your contentions.
Writing the Final Paper

The Final Paper:

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Must be six to eight double-spaced pages in length (excluding the title and reference pages), and formatted according to APA style as outlined in the Eastern Florida State College Writing Center.
Must include a title page with the following:
Title of paper
Student’s name- Lora Mobley
Course name and number- TRA 2010-01Z
Instructor’s name-Dr. Deana Looney
Date submitted-11/24/2019
Must begin with an introductory paragraph that has a succinct thesis statement.
Must address the topic of the paper with critical thought.
Must end with a conclusion that reaffirms your thesis.
Must use at least five scholarly sources, in addition to the text.
Must document all sources in APA style, as outlined in the Eastern Florida State College Writing Center.
Must include a separate reference page, formatted according to APA style as outlined in the Eastern Florida State College Writing Center.

ANSWER

Transportation and Logistics

To effectively run a profitable trucking company, company expenses and costs must be at their absolute minimum, allowing for more profits for the company stakeholders and the company’s success. Several factors need to be considered to ensure that the peregrine Trucking Company is running efficiently while saving costs and increasing its profits as well (Vernon & Meier, 2012). These steps should not only benefit the company but the society as well, by using socially conscious equipment.

Processes and Rules

The first factor would be the use of efficient tires. Since tires are a high cost for the Peregrine Trucking Company, the management needs to adopt a method of reducing their costs while ensuring the quality of their tires (Ang-Olson & Schrooer, 2002). There are several factors that apply in the care of tires and their rapid use. Some of them being axle loads, ambient temperatures, and conditions of the pavements, diligence, and skill of the maintenance department are all vital factors in determining how much tires will cost a trucking company.

However, despite the various factors that can vary based on other external and environmental issues out of the company’s control, there are three practical strategies that would come in handy to keep their tire costs under control.

First, it is critical that the company understands what factor is mostly affecting the efficiency of its tires. They can do this by thoroughly analyzing their scrap tires. Doing this will help the company understand what is causing the wear and tear (Litman, 2009). If, after the analysis, the problem points to production problems, the company can take the necessary steps to correct them or order from a different supplier. If the problem is due to the weight exerted on them during transport, the company will also be well informed on how to change that.

Secondly, the company can retread its tires increasing the lifespan of its already existing tires. While retreading costs vary dependent on the type of tire (McKinnon, 2010). The use of a quality casing and the same retreading professional and equipment would help in cutting costs to about a third the price it would cost to buy a new tire. Also, retreading would portray the company as socially conscious in their efforts to protect the environment from waste as a result of tire disposal (Litman & Burwell, 2006).

Lastly, before purchasing any tires from the current suppliers, the Peregrine Trucking Company needs to ensure that they are getting value for their money. Since price is not always an indicator of the tire’s quality, finding a brand that provides excellent and long mileages and has a high-quality casing is crucial in reducing any costs by the company (Litman & Burwell, 2006). Right tires enhance the efficient use of fuel when running the truck. Therefore, saving the company substantial amounts of money in fuel consumption.

The second major factor is the buying of new and efficient rigs to use in the trucking company (McKinnon, 2010). However, before purchasing the rigs, the company needs to give a detailed estimation about what they are looking to accomplish with the apparatus, how often do they plan on using them, and how much can they set aside to buy the rigs.

Having a clear understanding of this knowledge before-hand will be vital in ensuring that the products purchased for the company’s specifications (Vernon & Meier, 2012). Also, understanding how much oil and fuel each rig will require for its running and maintenance, helps the company in making transparent budgets on how much they plan to spend on fuel. Reducing the chances that there will be fuel waste.

The third factor would be to ensure that the Peregrine Trucking Company’s truck drivers are responsible and educated continuously. Drivers should be trained on how mileage affects the efficiency of the truck (Morrow et al., 2010). The company should also ensure that the mileage goals of the drivers are met efficiently and not just quickly. Helping the drivers understand that getting to the assigned destination quickly, does not mean that they got their efficiently, is crucial in the lowering of costs.

The management should focus on incentivizing billable mileages to boost their drivers’ efficiency levels and hence minimize company costs and increase profits (Ang-Olson & Schrooer, 2012). Investing in the training of the drivers to direct them on proper driving strategies will help in the reduction of fuel costs by thousands of dollars by the company.

The fourth method to help the trucking company in the cutting of costs would be to delegate other tasks such as accounting to outside sources, ensuring that all the staff at their disposal is engaged in ensuring that the company is running as efficiently as it possibly can while sticking to its strengths (Litman & Burwell, 2006).

This step will help in forming beneficial relationships with other companies while ensuring the minor company activities run efficiently, saving the company money from any possible errors in these areas (Vernon & Meier, 2012). The accountants would help the company identify how much they are spending on fuel consumption while providing them with clear information as to what the problem is according to their financial data. Having such information would be crucial in saving the company thousands of dollars from reduced fuel consumption. The fifth primary strategy would be to use quality fuel in the running of the trucks and machines in the company and finding ways to boost fuel efficiency. While cheap fuels may seem the most cost-efficient, in the long run, they end up costing the company so much more due to the lack of refining additives. The deposits from these fuels…

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