Case Study: Red Ball Express

Case Study: Red Ball Express

Lyndon K. Gumbs

Saint Leo University

Author Note

This paper was prepared for Transportation & Distribution Management, MGT 342, taught by Doctor Robert D. Pratt.

        Case Study: Red Ball Express

Red Ball Express CEO, George Harry, has been unsatisfied with the quarterly reports on profits margins and level of company profits.  Red Ball Express largest competitor, Roadway Carriers, was quoted in an article about their cost saving techniques and improvements in their profit margins. George has heard that a new employee, Dave Smith, is familiar with new technology that may be able to assist the flaying company.  

In analyzing Red Ball Expresses’ dilemma, it seems that the company is using inefficient and outdated methods in their operation.  Even though fuel prices have decreased, the operational cost has remained the same. Research of new technology to institute into the company’s current operation is desperately needed to save cost all around. Improvement is needed especially since the business includes shareholders who have an immense stake in the company’s quarterly profits.

George Harry has the right idea…it’s time to implement change to the current system. Introducing RFID and GPS systems are a common-sense idea as both technologies have driven quality products into similar businesses like Red Ball Express. Dave should ensure his report is focused on how these technologies assist in the tracking of operational progress as well as the benefits in cost saving measures, “The focus of physical distribution management was on the system costs and analyzing trade-offs scenarios to arrive at the best or lowest physical distribution cost” (Bardi, Coyle, Gibson & Novack, 2011).

1.    The information Dave should provide on RFID and GPS systems are the benefits Red ball Express reap from implementation of the technologies.  Some benefits from RFID tags in transportation are identification, tracking and location, and management of fleet operations.  RFID tags can be utilized as ‘real time” locators in pricing systems that is plaque by congestion. Because RFID provides better accuracy than barcoding, the process of reading items with tags is almost instant.  There is no requirement for “line of sight” scanning and information can easily be re-written. Automation is easily incorporated into a system which does not rely on solely on people.  RFID provides the required information of origin and destination of transported products within the tags.  Store information on all transported items can assist in avoiding mishandling or misallocation.  RFID tags will save not only cost but time which Red Ball Express can focus on other operational areas of the company.