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GG Freight Case Study

Grace Ijelu

UMGC

GG Freight Case Study

The company

GGFRT serves a good part of the southwestern region of the United States. The company has eight main terminals, and each has fifty vehicles in addition to seven hundred and fifty employees. the gross income is $35million and a 6% profit of future financial goal. Although the business environment has remained competitive, the company targets to have an 8% profit which will be achieved through an 8% profit and reduction in operating costs. The organization has operated in the last few decades and has shown great transformation on providing services to clients. It has gained a lot of recognition/confidence from different customers hence has stayed well ahead of its competitors. It serves a good part of the southwestern region of the United States. In terms of fleet, the company has 400 delivery/distribution vehicles with 80 semi-trailer units and 160 box trucks and 160 panel vans and box trucks. (Attached Document (Case Study: GG Freightways (GGFRT).

Business strategic objectives

Strategic objectives are the major reasons why organizations seek to come up with a strategic plan. The strategic plan is meant to guide the management come up with the possible decisions that will aid in achieving their goals. The plan updated annually based on the decisions made by the members on what needs to be improved on and omit what does not improve the business objectives (Vo, E. 2020).

The table has the business objectives which are meant to increase the efficiency and customer experience. The strategic objectives are hoisted under four pillars where each seeks to achieve a line of its own.

Business Strategic Objective

State the Objective (from the case study)

Explanation (in your own words; for the new objective, incorporate how the management team would use it to improve the business of GGFRT:

A strategic objective is to mark the strategy business process.

Tracking of freight

Keeping a real time record of the location of the freight to enable near perfect reporting of the delivery time to customers

A strategic objective is ease customer booking and save their time and costs.

Improve the percentage of loaded

The objective is to enable customers collect their freight at the nearest station which will reduce the cost and improve service delivery

A strategic objective is to give a high customer priority and make sure they are provided with the best services.

Provide warehousing services

Customers will have access to warehousing services where they may pick the goods at their convenience or request customers to pick them thus reducing cost and saving time.

To promote customer expectations, safety and convenience.

Vehicle safety

Have all the vehicles checked after 10,000 miles which will increase efficiency and reduce cases of accidents.

IT mission statement: Utilization of technology to gain a competitive advantage in the industry is the IT mission statement. Although, the current technology is not the most recent, the company intends to make most of it to increase the customer experience thus gaining a competitive advantage. Through the mission, customer services will be improved and also be the best freight service provider in the United States. Comment by Sean Sullivan: Each of the mission and vision should be no more than 1-2 sentences usually. Be specific to your company but related it to how IT will support or enabled business process. Here is some more help: IT mission, vision and values statements: Foundations for success | CIO Start off 2020 right with this mission statement generator (wholewhale.com)

IT vision statement: Implementation of technology in all business units to enhance coordination and efficiency as a way of gaining a competitive edge. The new system will allow all the stakeholders to keep in touch with the freight and different segments of the business which will result in efficiency and cost reduction. The company looks forward as the unique service provider in the freight industry and stands in an improved situation over its entrants. Through the implementation of technology, the company will improve how customers are serviced and they can improve their services soon. The company is also in the move to expand its operational strategies that will cover the needs of the industry in the upcoming years.

Governance

Although the governance will be headed by the IT department, it will have representatives from each of the other departments where there will be two from each. The members on the board will have the role of expressing the needs of their department which will then be incorporated into the IT strategic objectives. Additionally, they will assist in pointing out any hindrances that may occur between the departments. COBIT is the chosen methodology due to its easy adaptability and its emphasis on IT security (Haes & Grembergen, 2016).

The governance body will be charged with generating new IT ideas and identifying emerging needs of the business in different departments (Gregory, 2018). Priority to the needs will be based on the urgency of each. The governance board will determine which is most important and vote which should be allowed to prevail first.

Inventory of the current IT system

Although there are [plans in place to have an updated IT function, the current system comprises of three main segments. They include the finance and accounting department which handles the revenue and expenditure. The other segment is that of freight tracking which ensures tracking and coordination of freight from the point of receipt to its destination. There is also the fleet maintenance which handles the servicing of the vehicles by keeping a record and allocating the dates alongside a schedule to transport freight. The IT inventory is captured in the table below.

The table below gives a description of the current system in use and the IT resources that have been allocated to support the Company’s operations/ IT requirements.

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Running head: GG FREIGHT CASE STUDY

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GG FREIGHT CASE STUDY

Current System

Spring 2019

Function/Description

Strategic Goal aligned to

Business Unit/Department

Business Benefits

IT spring ‘19 Resources

Freight tracking system

Currently used in tracking and optimizing services in the company. It is essential in ensuring the operations run smoothly.

Streamline the organization’s operations

Operations

Smooth running of the organizational operations.

IT accounting systems

Fleet maintenance system Comment by Sean Sullivan: Ensure this stays in the margins.

Has a history of the vehicles on fleet and any repairs done to the vehicles before? Also, Information concerning the maintenance schedule is provided by this system.

Any expenses and services done to a fleet vehicle are provided by this system

Maintenance

Maintenance expenses are always updated within this system.

IT accounting systems

Finance and Accounting system

Contains information on the company’s expenses, profits, or losses made by the company. The system has been used to replace the currently used system.

Ensure no errors and done and accounting operations are done smoothly.

Accounting/finance

Improved/ accurate accounting

IT accounting systems

Financial Reporting System

Helps in the keeping of accounting and financing records for referencing

To promote easy record keeping and availability when needed.

Accounting/ finance

accurate account records

IT accounting systems

Sales staff mobile application system

Contains information concerning potential customers

Helps in identifying trends and requirements of the customers.

Promote customer services.

Convenience of the customers and customer needs

Mobile application tools

References

Attached Document (Case Study: GG Freightways (GGFRT))

Haes, S. D., & Grembergen, W. V. (2016). Enterprise governance of information technology: achieving alignment and value, featuring COBIT 5.

Gregory, R. W., Kaganer, E., Henfridsson, O., & Ruch, T. J. (2018). IT Consumerization and the Transformation of IT Governance. Mis Quarterly, 42(4), 1225-1253.

Vo, E. (2020). What is strategic planning? Strategic planning process. Retrieved February from https://sba.thehartford.com/business-management/what-is-strategic-planning/