Knight in Shining Trucks Essay
The case is about Knight Transportation, Inc tries to duel with its fleet’s inefficiencies by using the new technology such as GPS and new devices. This change not only can help Knight to get more information of its fleet, but also save at least $1 million dollars in fuel for the company. This brings Knight to get an 11 percent profit. Before the Knight used Fleet View, it had a lot of inefficiencies in the fleet. Theft threatens the trucking company. They always follow the route of the trucks and stole the goods at night when the drivers have gone.
It can be a huge loss for company. For trucking industry, time is the most difficult factor for them to control. When truckers transported the goods to the store, they need to wait for the store until the store has the room to off-load the goods. Therefore time-wasting always happens. The other problem is the poor communication between truckers and their delivery sites.
The company doesn’t know the location of trailers and whether it is full of goods or empty. So mismatch of the resources may be appeared and the cost will also be increased.
Since the use of global positioning system (GPS), Knight has more information than before. Firstly, the company can locate the trucks through GPS by using the Terion’s product Fleet View. Second, after the supplementary product Cargo Sensor has added, the company can detect the presence of cargo inside the trailer. It can be instantly reported to the company when the cargo is empty. Also, the sensor can detect the fuel level and tire air pressure of the trucks so that drivers can notice and then maintain the trucks at the proper time.
Lastly, staff at the headquarters can receive all information about the trucks such as their location, where are they moving and the cargo’s condition. Therefore the staff can detect when the theft stole the cargo. The indicator for greater efficiency at Knight is the ratio of trailers to trucks. In the past, the industry could not reduce the ration from 3 to 1. In 2002, the ratio of Knight was 4. 4 to 1. But now the ratio is only 2. 3 to 1. This can explain why Knight has an 11 percent profit.
There are eight ways to gain competitive advantage. Among these eight ways, reduce costs can be applied to Knight. The benefit of reducing costs is that a company can gain advantage if it can sell more units at a lower price while providing quality and maintaining or increasing its profit margin. Since Knight has experienced a fast growth in trucking industry in the U. S. , it should follow the trend of the world and improve its business performance by using technology. Also, Knight discovered there are a lot of inefficiencies in its fleet.
Therefore it implements new devices such as GPS and Cargo Sensor in order to improve the efficiency. The new technology brings several benefits to Knight in getting more information about the trucks and the fleet. After Knight has used these new technologies, it has saved at least $1 million dollars in fuel. Therefore we can see that by reducing costs, Knight can gain the competitive advantage in this industry. We all know that technology is always changing at a fast speed.
Although Knight has used new devices and software that bring the competitive advantage for the company, other competitors can also use the same technology and follow what Knight does. Therefore if a company doesn’t improve the business performance with the updated technology, its competitive advantage will not keep long. Therefore if Knight wants to maintain its advantage in this industry, it should look for new opportunities and keep improving its services. Also, it must develop new features to keep the system on the leading edge with the consideration of cost.