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Quigley Global Transportation* Queenie Quigley is a very successful entrepreneur. She grew up in an ocean port city and loved the sea. Her father was a commercial fisherman and often took her with him during the summer. Her love for the sea triggered an interest in international shipping. Qucenie knew that an ocean transportation business would provide services that would always be needed and she eventually created a large, successful ocean transportation company. Queenie understands that her transportation company has to be located at major shipping ports to get the best contracts. Often her clients want to board the ship and look around to see how their cargo will be handled and stored. While those types of clients are not frequent shippers, they are willing to pay a premium price to ensure their goods get to the distant locations undamaged. A brief tour aboard one of the Quigley Global Transportation vessels appears to instill confidence and trust. Quigley Global Transportation currently has ships stationed in the following ports Hong Kong, Rotterdam, Netherlands, Los Angeles, USA; New York-New Jersey, USA; Santos, Brazil; and Ambarli, Turkey. These ports were rated as number 5, 11, 19 , 23,39 , and 45 out of the top 50 worldwide in 2015 . Qucenie believes her selection of these ports was a crucial factor in her company's success. As the old adage goes, it is all about location, location, location. These ports gave Quigley Global Transportation. a set of locations that enabled her company to serve all major areas of the world-North America, South America, Europe, the Middle East, and Asia. However. Queenie knew there were still many opportunities for business if she could expand into other major ports. Onekey criterion was the 20-foot equivalent unit or TEU. The TEU is a common unit of measure, even though it is an inexact unit of measure. The unit basically describes the common shipping container that is 20 feet 8 feet 8 feet. Ports are rated by the volume shipped through them each year, in millions of TEU. Obviously, from the perspective of potential business Queenies company could obtain, total TEU handled per year is her number one criterion for selecting the next port. In the past, Queenie's expansion strategy was based on opportunities that gained her access to a major continent. She had sought out contracts that she knew would lead to a foothold in a port. However, now that Quigley Global Transportation was on solid footing. Queenie wants to developselection criteria that are more robust. She decided to use the weighted factor rating model as her selection tool for the nect port. She is still convinced that TEU should be the number one criterion. Although she has four other fictors shown in the table betow, Qucente has not decided on their importance. Queenic thought if she weoked at her current ports through that criterion if would help her decide on how to weight the criteria going forward. Discussion Questions 1. Queenie has a very challenging task ahead of her. As stated, she didn't use any selection system for the first six ports except that she secured a contract with a client and then built that into a foothold in that port. Queenie wants a more effective selection system moving forward. Her first criterion is still TEU and she plans to weight it at 30 percent on a scale of 0100%. No two criterions can have the same weighting: Queenie wants some sort of distinction between each one. What is your recommendation for weighting the other four criteria? Why did you weight each one as you did? Explain the logic of your weighting. 2. Queenie wants to expand her business into Africa. Based on her initial analysis there are no ports large enough in many African countries to make them viable by themselves. However, transporting goods from another port to African ports would be a sound business move. Queenie had her staff provide a list of five ports that could be used to serve Africa. Using the recommendation you provided Queenie for the weighting-factor model and the chart below, select the best port for Quigley Global Transportation. 3. Review the locations of the ports listed in question 2 (the World Fact Book can help). Keeping the TEU as criterion number 1, which of the other criteria would you change to enhance the selection process? Think in terms of the African question. What factors would be better criteria from a business and supply chain perspective? Explain your reasoning. 02019 Cengage Learning