Dispatching Trilemma: Third-Party, Hire, Or Do It Yourself

Authors
Anton Fenik, Stephen LeMay
Region
North America
Topic
Entrepreneurship
Operations
Strategy & General Management
Length
3 pages
Keywords
Logistics
dispatching
freight market
small business management
agency theory
Student Price
$4.00
Target Audience
Undergraduate Students

The critical incident explores the complexities Jan, owner of JDD Rockway LLC, faced in navigating the challenging U.S. freight market post-COVID-19 pandemic. The focal point of the case is Jan's trilemma in dispatching options: using a third-party dispatching service, hiring an in-house dispatcher, or managing dispatch himself. Each option's financial implications and operational impacts are analyzed, highlighting the choices' advantages and challenges. The article provides insights into Jan's decision-making process amid evolving market conditions and underscores the broader implications for small carriers in the current freight landscape

Learning Outcomes

In analyzing this critical incident, students should be able to: 

1. Name and define key motor carrier terminology as it relates to the dispatching function of logistics. 

2. Explain the role and responsibilities of a trucking dispatcher in coordinating freight transportation and managing customer satisfaction. 

3. Develop an understanding of Agency Theory and how it applies to the dispatching function within motor carrier mode of transportation.

4. Construct a SWOT analysis for the three different dispatching options presented in this critical incident. 

5. Evaluate and recommend one of the three dispatching options within the context of the freight market conditions of the time.