The transport business is extremely competitive. In order to success in this type of business, a company must be able to closely monitor and manage its operations to provide reliable services to the customers, to minimize costs, to respond customers quickly, and to promptly settle customer claims for lost or damage goods.
In an effort to create values for the customers and to achieve its business objectives – increase sales volume by 2004 to two and a half times the 1998 volume at 1998 price - Wilkinson’s business strategy is to operate each depot as a profit center and allow each depot manager to be accountable for his or her depot profits. Wilkinson’s strategy is also to provide reliable service, to offer a competitive price, and to make personal contacts with its customers. For instance, Wilkinson provides reliable services using computerized control system (WILKONTROL) to achieve operational excellence. This computerized control system allows Wilkinson to correctly record the shipper’s information so that the consignment reaches the intended destination. In addition, Wilkinson offers a competitive price by allowing salespersons to discount the list price in response to competition. Lastly, Wilkinson’s salespersons also handle complaints or contacted present customers to ascertain that service is satisfactory.
Besides the service, price, and personal contacts, computerization and depot mechanization are also Wilkinson’s business strategies. Wilkinson’s plan is to mechanize most depots by 2001. For instance, Wilkinson uses automatic tracking system to gather and track data. This enables Wilkinson to quickly identify shipments that deviated from the standard pattern and to provide daily or weekly operating information.
The profit center system allows the 16 depots to operate as a small business, reporting to the regional manager. Each has to determine how it is going to generate revenue. This system enables the president of Wilkinson to identify...