Ops M1

Running head: assessment of key industy changes 1

assessment of key industy changes 3

Assessment of Key Industry Changes

Ops Management and Technology

Assessment of Key Industry Changes

Previously in MBA 560: Marketing Strategy I created a business plan on a potential starter company called JLD, LLC. This company is in the general freight industry. The General Freight trucking deals with the handling and the transportation of the different types of goods by the use of the containers or the van trailers (IndustriusCFO, 2015). The services which are being provided by the general freight trucking industry includes the local pickup, local delivery, local sorting, and the destination sorting among others (IndustriusCFO, 2015). These services are being offered both at the long and the short distances. Truck loading are the full and the single loads which moves direct from origin to destination. JLD, LLC. is an Albany, GA based trucking company that aims to be one of the largest trucking company in the world. JLD, LLC. is focusing on the general freight and distribution sector. These particular sector was chosen due to the growth prospects of everyday customer needs of a variety of products. From the operations management stand point JLD, LLC is a company that provides service to customers. The trucking company is a key branch to the operational plan.

Impact of Change

One of the biggest changes in the trucking industry is the installation of the Electronic Logging Devices (ELD) in the trucks. This had a huge impact on the trucking negatively and positively. With this new system in place truck drivers have to the changes. “Many truckers have to adapt to a new way of driving in order to avoid ELD penalties.

Some drivers may be cutting corners in order to adapt but it may also have a long-term benefit in that carriers are re-evaluating how they run routes and trying to reduce how much of a truckers’ time is wasted (MacMillan, 2019).”

Key Obstacles/ Opportunities

The key obstacles that the trucking industry has to face with the installation of the Electronic Logging Devices is that many truck drivers disagree with having one. Especially self owned companies and owner operators. They would rather use the old method which is logging their trips on paper logs. When the Federal Motor Carrier Safety Administration passed the law for the ELD, I do not think they took in to count of unloading/loading time and traffic jams. For example, you have a driver that had to drive three hours to a distribution center. When the driver arrives it takes five hours to get loaded. Then the driver has to deliver that load seven hours away from the distribution center. “As you know, a driver is allowed a period of 14 consecutive hours in which to drive up to 11 hours after being off duty for 10 or more consecutive hours. The 14-consecutive-hour driving window begins when a driver starts any kind of work for a carrier. Once the driver has reached the end of this 14-consecutive-hour threshold period, they cannot drive again until they have been off duty for another 10 consecutive hours, or the equivalent of at least 10 consecutive hours off duty (Moncion, 2020).” The driver will not make it due to requirements set into place for the ELD. The opportunities that the Electronic Logging Device is that the driver will always be aware of how much time they have to drive before they are in violation.

Enabling Factors and Inhibiting Factors

The Electronic Logging Device has its advantages and disadvantages in the trucking industry. An enabling factor of the ELD is the reason for installation is for the safety of drivers. It is in place so drivers will not overwhelm themselves with driving a lot of hours. If the drivers are not drowsy it is least likely for them to cause an accident. An inhibiting factor of the ELD is the cost for installation in each truck. ELD is required for all trucks that were manufactured after the year 2000. The frequency of overwhelm drowsy drivers causing accidents is one of the reasons that brought about this change in the trucking industry.

References IndustriusCFO. (2015). NAICS 4841 - General Freight Trucking. Retrieved from IndustriusCFO: https://secure.industriuscfo.com/industry-metrics/naics/4841-general-freight-trucking MacMillan, C. (2019, December 19). 7 Trucking Industry Changes Which May Affect Your Truck Driving Career. Retrieved June 29, 2020, from https://www.smart-trucking.com/trucking-industry-changes/ Moncion, M. (2020). The 14-hour Rule for ELD Explained. Retrieved June 29, 2020, from https://blog.bigroad.com/safety-corner/14-hour-rule-explained .