ECM Transport Business Performance - Case Study Example

Part ECM transport (UK) ECM is a vehicle delivery services based in UK. ECM has been in this business for more than 25 years and has built for itself a reputation of reliability and trust. The excellent customer services oriented at establishing long term relationships is one important aspect of their business model. As an aftermath of recent global economic recession, many transport companies have faced severe economic and financial troubles. This is because transport industry is primarily based on movement of goods. These goods are moved both for trade purposes and personal relocation. The economic crises has reduced demand for goods, this is because income levels have seriously been affected because of recession. The reduced demand for goods has affected European trade activity and has thus directly affected transportation industry. This negative affect has not been severe for ECM as compared to other transporters operating in European markets. The main reason behind this minimal affect has been a diversified portfolio of ECM’s customers. The business strategy being used by ECM is of a long term growth and customer relationships. As transportation is a service based business therefore this is a very important part of being. The service excellence ideology is actually inherent in this model of long lasting relationships. Strategy of long term relationships can go a long way in establishing a steady stream of sales for a business. The importance of steady and constant sales can be understood by analyzing importance of steady cash flows. ECM currently employs more than 530 personnel in various job designations. Most of these are administrative jobs aimed at increasing customer satisfaction by increase business efficiency. ECM only employs the best and most competent drives for their services. A very good judge of company performance i.e. independent of industry benchmarks is growth rates in sales etc. ECM has show tremendous growth in its revenue and delivery volume over the last few years. In the last 6 years delivery volume has increased by 87%. The sales volume has also shown tremendous growth and has grown by over 110% in last 6 years. The company has achieved sales of over £ 62 million in 2008. These excellent sales figures have made it the largest privately owned UK car carrier. ECM has achieved excellence by obtaining both ISO 9001 and ISO 14001 certifications. ISO 9001 has been awarded for ECM’s excellence in quality. The ISO 14001 has been awarded for environment friendly business systems of ECM. Currently ECM operates a fleet of more than 360 vehicles which includes many different categories of transportation capabilities. Other than ISO 9001 and ISO 14001 ECM has won the following awards: Honda Award for Excellence for Outstanding Quality during 84ki 2008 GM Global Haulaway Carrier of the Year 2007 Ranked in Europe’s Top 500 Companies for growth in employees 2003-2006 GEFCO Carrier of the Year 2005 The customer list of ECM is even more impressive and includes top industry names: BMW CAT – Renault • Chrysler Group – Chrysler, Jeep and Dodge • Daimler – Mercedes-Benz and Smart • Ford • GEFCO – Peugeot, Citroen • General Motors – Vauxhall, SAAB and Chevrolet • Honda • Hyundai • Jaguar • Land Rover • Mazda • Nissan • Toyota and Lexus • Volkswagen Group UK Ltd – Audi, Volkswagen, Volkswagen Commercial, SEAT, Skoda Business requirements Licenses The drivers being hired usually have their own driving licenses. However these licenses do not give holders the authority to operate large vehicles such as car transporters. According to UK law as given in Road Vehicles (Construction and Use) Regulations 1986, as amended and the Road Vehicles Lighting Regulations 1989, special licenses are required to operate vehicles which exceed certain sizes. If the weight of vehicle is more than 35000 Kg special considerations are given to size of vehicle. If the towing vehicle has gross weight in excess of 3.5 tones the maximum width and length of the trailer are 2.55 meters and 12 meters respectively. According to Regulations 15 and 16 of The Road Vehicles ordinance special brake requirements are also applicable for vehicles having a gross weight above 3500 kg. The drivers operating these vehicles are required to obtain Categories C1 and D1 licenses from the government. Prior to 1997 all applicant which cleared their driving test, automatically acquired C1 and D1 categories permission. However after 1997 special tests are carried out to issue licenses in this category. However for all license holders a further statutory driving test is required if they wish to tow a trailer exceeding 750kg. This is called category E. Therefore only drivers in E category can tow trailers weighing 44 tones. Type of vehicle The Volvo 44 tone truck is the perfect truck for this kind of operations. This is a semi-trailer truck. These articulated Lorries are made up of two different parts. The front part is basically the tower which drags along the trailer. In UK to carry the gross weight of 44 tones a minimum of 3 or more excels of each side are required. These are called six legers with the center wheel having a single tire. There are no specific height limits for UK roads when it comes to trucks. There are however some physical constraints which can limit height of a truck. Most bridges go up a maximum of 17 feet and cannot therefore give access to vehicles taller than this. Therefore 16.5 feet is the ideal height for these trucks. Driver Benefits There are different wage rates being paid to truck drivers which carry such heavy loads. These wages have however come down as most transport companies have taken a serious economic and financial hit in wake of economic recession. Some transport companies pay their drivers both a daily stipend for accommodation and food while they are on the road and an additional bonus. Congestion Issues The UK roads are congested with traffic in office hours especially in large cities such as London and Birmingham. Most trucks therefore prefer low traffic hours to travel into these cities. Moreover as mentioned height of bridges can be a problem for taller trailers. The travel routes must be chosen after analyzing heights of different bridges a trailer has to cross. Ideal vehicle Volvo 44 tone truck is the ideal vehicle for these kinds of operations. Ford and Nissan also have alternative trucks. The Ford however gives much less fuel efficiency as compared to Nissan. Fuel tanks The long range fuel tanks would not be a benefit as most places being traveled by these delivery trucks have fueling options. Therefore carrying over extra weight in terms of fuel would only decrease efficiency of operation. Multipurpose Most of these vehicles cannot be used for other purposes. The tower however is a multipurpose unit. It can be attached to many different types of trailers including garbage disposals and movement of material used in construction etc. Part 2 Operations of a Hot Tub Manufacturer To be able to deal in the Hot Tub and Spa business (especially hot tubs) one has to be careful in the selection of the raw material that would go into the building of the hot tub as many different components have to be integrated into a whole new system. To build a complete hot tub system, first you have to select your tub and benches from any variety of vendors in different materials like wood or acrylic etc, and then to create the support system components - a pump, a filter, a heater, a jet set, a control set and a plumbing kit are needed. These have to be carefully chosen for compatibility issues and should be operated at least once before leaving the shop to test the workability. Then you can select any options or accessories you wish to add to your system like extra jets or leather lining or head rests etc. After the hot tub specifications are ready and order is taken, the company is supposed to ship the product as soon as possible and as carefully as possible as not to damage the expensive equipment. Depending on the place and time, shipment ranges from a day to a couple of weeks. Vehicle restrictions Yes they can sometimes restrict the delivery comfort as the vehicle needs to have the specific support equipment on it which can prove difficult to maneuver around the houses. The ramps and the dolly cranes can be somewhat troublesome to the flexible handling and safe installation of the hot tub since the hot tub itself is very heavy and the equipment that carries it to the required location can be tricky to handle. Thus, homes with many bends or architectural complexities in terms of walls structure and layout can prove difficult to deal with for the installation of a hot tub. Working conditions The working conditions should be adequate and safe for the workers at the company. The benefit plans should can vary from company to company however, profit sharing and bonuses for good feedbacks are always helpful to align the interests if the employees. The drivers should be adequately compensated for their on-time deliveries (average wage rate in the UK is about £7.50/hour) and should be well aware and ready for any emergency that the installers incur during any shift. Apart from this many Hot Tub and Spa manufacturers and dealers offer their staff technical training and up-to-date trends in salesmanship along with the technology that goes into the very designing of the hot tubs (through CAD). Thus the computer handling skills of the employees should be up to the mark. Outsourcing Yes in a sense it would be because it would free the manufacturer of the transport cost and the cost of the driver who has to have the relevant knowledge of the area. Moreover, if the shipment is at a large distance (trans-border or trans-state) then the cost for delivery goes up which means the price of the product goes up which ultimately leads to customers preferring other brands. However, a firm should realize that the cost for transport is only laid off if it can afford to deal with a third party. This is a situation generally for the businesses that haven’t grown that much yet or which are small in size. Thus, the cost/benefit analysis should be done in accordance with the current costs of the firm for the transport and delivery issues. Licenses It depends on what state or country one is operating their business in but in general, a general contractor’s license is needed in order to do any kind of business. One has to pass a written test to get one which authorizes that person to operate a business. For Hot Tubs and such, there is no hard and fast rule all over the world which makes the dealer certified, however, in the U.S., it is better if one gets accredited from the Certified Service Technician – APSP which helps the credibility of the business along with the purchase of the license under the chapter 6.47 SCC is required for Hot Tub Services. Joining associations like the Association of Pool & Spa Professionals also helps to boost ones credibility. Moreover, there are some licenses which have to be attained by contacting the authorities who can issue the relevant permits for the Spa and Hot Tubs Dealers in their state. Type of vehicles To handle a hot tub, one needs it delivered on a flat bed transit type vehicle such as a pickup truck which is either a full sized pickup truck like the Chevrolet Silverado/GMC Sierra, Dodge Ram, Ford F-Series or a middle sized pickup truck like a Ford Sport Trac, Honda Ridgeline, Hummer H3T, Nissan Frontier etc. The maximum length of the vehicle should be 6.3m, and maximum height 2.5m. Lifting Devices For a complete and safe installation, the company that is delivering the hot tub needs to ensure that it has the proper safety tools to be able to handle the equipment and not damage it or the surroundings. For a hot tub, the first thing needed is an able vehicle like a pickup truck. You would also need an Aluminum Trailer whose deck should measure at least 7 wide and 8 long. It should have a capacity of 2200 lbs and should never be overloaded. A spa slide or an Aluminum Cart can help to make things move easily. Straps and Dolly lifters can assist with the lifting part in the installation. Vehicle Advertisement It depends on the company and the size of it. Most large companies do advertise on their vehicles as a way of marketing themselves however, not all companies do it. Some companies simply choose not to advertise on the side of their pickup trucks which are delivering. So at the end of the day, it depends on the owner and the size of the company. Installation (electrician) Generally, the companies send in their own licensed electricians along with the delivery team to install the hot tub however, it is not always the case and one can simply manufacture and deliver the hot tub rather than install it all the way through as well. So in the end, it is simply important to have a licensed electrician on hand who can install the wiring for the customer. The improper wiring may prevent the hot tub from operating in a safe manner which can result in electrical shock, injury, or death. Such over sight of safety can also lead to a malfunction of the tub’s equipment and risk of fire. Manpower Generally, you need 2-3 able bodied men to deliver and install the hot tub however; it can depend upon the size of the hot tub as well as the dimensions of the area where the installation will be made. This does not usually include the driver who is only allowed to drive and not assist the installation of the hot tub. The installers will be available to demonstrate the fundamental operation and use of the tub, and explain the routine maintenance including basic chemical treatment. Read More