(Adapted from Coyle, J. J., Langley, C. J., Novack, R. A., & Gibson, B. (2013). Supply chain management: a logistics perspective. Cengage Learning. 9th Ed.)

Bobs Custom BBQs, a manufacturer of outdoor grills, uses three primary carriers to move grills from its Texas factory to major home improvements retailers in the United States and Canada. The owner, Bob Flame, wants to evaluate the performance of the three carriers and collected data for the following metrics over a three-month period.

ALLIED TRANSPORT

99.5%

0.9%

99.3%

1.3%

4.6

Evaluation Criteria

On-time delivery Loads with damage claims Billing accuracy Loads rejected Customer satisfaction ratings

Table 1 - Carrier Scoresheet

BESTWAY FREIGHT

98.7% 1.6% 99.6% 2.1% 4.2

CERTAINT CARRIERS

98.2% 0.4% 98.2% 0.9% 3.9

Bob asked his transportation manager to develop a scorecard to help compare the carriers on these five metrics. The manager came up with the following chart:

Weights

0.40

0.25

0.15

0.10

0.10

EVALUATION CRITERIA

On-time delivery

Loads with damage claims

Billing accuracy

Loads rejected

Customer satisfaction ratings

Table 2 Evaluation Criteria

Performance evaluation

Score

..........

..........

..........

..........

.......... ..........

>98.5% 96.1 98.5% 93.0 96.0% <93%

<0.5% 0.5 1.0% 1.1 2.0% >2.0%

>99% 97.0 99.0% 95.0 96.0% <95%

<1.0% 1.0 2.0% 2.1 3.0% >3.0%

>4.5 4.0 4.5 3.0 3.9 <3.0

= 100 = 70 = 40 = 00

= 100 = 70 = 40 = 00

= 100 = 70 = 40 = 00

= 100 = 70 = 40 = 00

= 100 = 70 = 40 = 00

Weighted Score

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Questions (Please report your answers on the attached spreadsheet.)

1. Calculate weighted performance scores for all three carriers. (15 pts)

2. Based on the five metrics used in the above scorecard, how would you characterize the managers

   approach to securing transportation services for Bobs Customs BBQ? In other words, does the

   manager seem to have a more transactional or a more relational approach? Justify. (10 pts)

3. Critically evaluate the managers proposed scorecard. What would you keep and what would you

   change if you were in the managers shoes? Feel free to use (and describe) hypothetical scenarios

   and assumptions to justify your evaluation and choices. (10 pts)

4. Create an alternative scorecard that would indicate a different approach than the one implied in

   the managers proposition based on you answer to Q.2. If you said in Q.2 that the managers approach seems more relational, then build a scorecard that would be more in line with a transactional approach. Conversely, if you said that the managers approach seems more transactional, then build a scorecard that would be more in line with a relational approach. (15 pts)

5. Justify your answer to Q.4. (10 pts)