1
TUCKER COMPANY WORLDWIDE
FORMAL CASE – FINAL PAPER
SUBMITTED TO: MARLON NANGLE
DATE: 17-04-2022
NAME: PRANAY RALHAN
STUDENT NUMBER: 8736845
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Table of Contents
S.NO
Topic
Pg.NO
1
Executive Summary
3
2
Situation Analysis
4
3
Problem Statement
5
4
Analysis
5-7
5
Shipment
Options/Alternatives
8-13
6
Recommendation
14-15
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Executive Summary –
To: JEFF TRUCKER (CEO), JIM TRUCKER (PRESIDENT & COO)
From: MIKE MELLENCAMP (SALES MANAGER)
Subject: Appropriate logistical solution for Bell Oil Refinery
As you are aware that Bell Oil Refinery is looking for a 3PL to transport its 3 products, I
think TCW should send the bid as having them as a customer will have a positive
impact for our company in the market.
The 3 products with their shipment requirement are as follows –



Product 1 – 67 Kilogram Gasket is required to be shipped from Houston, Texas
to Reading, Pennsylvania, this is a critical product, and a delay of a day would
result in millions of dollars in loss for them.
Product 2 – 102,058 Kilogram Tank is required to be shipped from Houston,
Texas to Wilmington, Delaware, this is an oversized and overweight product.
Product 3 – 90 Kilogram Computer server is required to be shipped from
Herndon, Virginia to San Jose, California, this server is valued at $48,600 and
contains very sensitive corporate information.
Other critical information is not provided by Bell which makes it difficult to select a
particular shipping option. I have prepared a list of options (further in the report) that I
think are possible with the given information.
I have also further shortlisted these options in the recommendation section to present in
the bid.
The bid is due in one day, I am looking forward to receiving your approval on the
recommendations.
Please contact me for further inquiry or better understanding of the report.
Respectfully,
Mike Mellencamp,
(Sales Manager)
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Situation Analysis
Item
Bell Oil Refinery
Competition with other 3PL companies in
the market
Products that Bell Oil Refinery wants to
ship
TCW has no assets
Product Information
Request for proposal
Use of mixed modes
So What?
Wants to ship its product and TCW is
required to submit the bid to win the
contract, if contract is secured TCW will
have a positive impact on its reputation in
the market.
Low-ball offers and unrealistic
commitments by other 3PL companies
might make TCW loose the bid.
 Product 1 – 67kg Gasket from
Houston, Texas to Reading,
Pennsylvania.
 Product 2 – 102,058kg Tank from
Houston, Texas to Wilmington,
Delaware.
 Product 3 – 90kg Computer server
from Herndon, Virginia to San
Jose, California.
TCW has been providing the necessary
services by using fleet operators, and
other transportation modes such as,
trucks, trains, water, and air.
Limited information is provided from Bell
Oil Refinery. If Mellencamp is unable to
contact the procurement manager, he
would have to prepare the bid with
available information.
Only one day is available to prepare the
bid.
Bell Oil Refinery is willing to use mixed
modes of transportation to get the good.
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Problem Statement
TCW wants to provide the best logistical solution to Bell oil refinery with value added
service at minimized cost for all 3 products.
Analysis (SWOT)
Strengths:
TCW is a third generation 3PL company with decades of experience in the field.
It is well-versed in the market and employs specialists in their sector.
Jeff Tucker and Jim Tucker, the company's current CEO and COO, are passionate
about their family's business.
Furthermore, it is ISO 9001:2015 certified. Customer focus, integrity, safety, quality, and
advocacy are all important values at TCW. These characteristics distinguish it from its
competition.
TCW efficiently provides services including freight hand-offs, saving time, and
decreasing the headaches of paperwork, billing, audits, and other administrative tasks.
It serves as a middleman between shippers and clients.
Weakness:
TCW is required to prepare the bid in one day with the limited information provided
about the three products. Moreover, it is difficult for TCW to provide value-added service
at a low cost if the customer approaches them at the last moment.
If TCW is unable to contact the procurement manager at the Bell oil refinery and get
further information they might have to present an option that is not viable or expensive
for both the companies, hence ultimately not winning the bid.
TCW does not own any trucks which makes them dependent on other transportation
companies or owner-operators. Hence, issues of these companies and owners can
create a problem for TCW.
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Opportunities:
Despite TCW's reputation in the 3PL business, this deal has the potential to solidify
TCW's position as a market leader.
As a result, this contract allows TCW to demonstrate its skill and efficiency, which sets it
apart from its competitors.
It is now that TCW can emphasise and demonstrate its fundamental principles of
customer focus, safety, integrity, quality, and advocacy.
This contract covers products that require special shipping, such as those that are
urgently needed, big, or contain sensitive information.
As a result, winning this contract will demonstrate TCW's ability to provide the best
logistical services for a wide range of needs.
Threats:
TCW's first and most serious challenge is competition from other 3PL firms in the area.
TCW is fully aware that its competitors can employ a variety of tactics to entice clients
and provide low-cost services. However, such services cannot compete with TCW's
services, yet the low cost may be an attractive aspect for clients.
Second, TCW must prepare for the bid in a short amount of time, which poses a threat
to it.
Furthermore, TCW may face challenges due to a lack of information from the consumer.
TCW's Carrier Sales Manager studied the specific demands of all three products and
selected various solutions for each. TCW is now required to choose the best solution
among these alternatives. TCW's poor decisions may have a negative impact on the
company's reputation.
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Qualitative:
 TCW has been providing services from 1961 and are considered market leaders.
 TCW has assisted government in national emergencies.
 TCW believes in establishing strong communication with customers and service
providers.
 TCW also has ISO certification that appears attractive to the new customers.
 TCW also provides scorecards, real time tracking and visual performance
statistics.
Quantitative:
 The first product must be delivered in a short period of time, necessitating the
use of a mode of transportation with a high percentage of on-time availability.
TCW offers options ranging from 92-100 percent on-time availability, with
reliability ranging from 85 percent to 99.99 percent, and costs ranging from $150
to $25,000.
 The second commodity is extremely heavy, weighing 102,058 kg, with TCW
prices ranging from $135,000 to $410,000.
 The third product, a computer server, includes highly confidential corporate data
and costs $48,600. This necessitates a dependable and safe form of
transportation, and TCW offers a variety of solutions that range from 75% to
99.9% reliable.
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Shipment Options/Alternatives
Product 1
Alternative
LTL
Pros

99.9% availability for the same

Maximum transit time
day

Highest chances of damage
Minimum cost

Minimum reliability

No insurance
99.9% availability for the same

Less reliability
day

Highest chances of damage

Reasonable cost

No insurance

Average transit time

No insurance

98% availability for the same day

99% reliability

Reasonable cost

Nominal damage

99% reliability

Less damage

98% availability on the same day

Nominal transit time

Reasonable cost

No insurance

Insurance coverage

Chances of availability on the

Moderate cost

LTL Expedited
2-Day Air
1-Day Air
TL
Cons

same day

95% reliability
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TL-Team

Insurance coverage

Moderate cost

availability on the same day

TL-Expedited
Airplane charter

96% availability for the same day

98% reliability

Insurance coverage

Fewer chances of
95% reliability

Comparatively higher cost
100% availability on the same

No insurance
say

Highest cost

Least transit time

99% reliability

Least damage
Product 2
Alternative
1
Pros
Cons

Moderate cost

Highly complex route

Minimum Planning required

The likelihood of additional

Minimum transit time

No additional cranes
cost is high

Extreme police requirement

High possibility of transit
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delays
2

Lowest cost

Simple route likelihood of transit


Both road and rail survey
required
delays

Additional crane required
Likelihood of additional cost is

Maximum transit time
least
3
4

Limited police involvement

No additional insurance required

Moderate chances of the

Highest cost
additional cost

Maritime insurance required

Only road survey required

Additional cranes required

Moderate transit time

Moderate police involvement

Moderate route complexity

Moderate transit time

A quite high cost

Simple route

Both road and water survey

Limited likelihood of freight

Additional crane required
damage

High likelihood of additional

that too +2 lifts.
Limited police involvement
cost

Maximum planning time
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
Maritime insurance required
Product 3
Alternative
LTL
Pros

Minimum scheduling time

No change in cost despite the

Cons

Change in cost due to change
in weight
change in dimension

Least reliability
Minimum cost

Maximum transit time

Maximum possibility of
damage
Next day air
Cargo van

Low scheduling time

Low transit time

Very fewer chances of damage

Limited insurance coverage

Moderate cost

No insurance

Moderate scheduling time

Sufficiently high transit time

No change in cost due to weight

The likelihood of damage is
change

Low cost

Highest insurance coverage

Change in cost due to change
in weight or dimension
quite high
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Term cargo van

Moderate schedule time

No change in cost due to weight

The likelihood of damage is
quite high
change

Limited transit time

High reliability and insurance
coverage
Airside

Moderate schedule time


No change in cost due to weight
 95% reliability
High transit time
and dimension change

Moderate likelihood of damage

Highest insurance cover

Moderate cost

High reliability

Moderate damage

No additional cost

Limited transit time

Highest insurance coverage
High-value airside

Moderate damage
with security

Highest insurance coverage
Team Airside

Scheduling time is quite
high


High cost
Quite high scheduling and
transit time
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
No additional cost

Moderate cost
Team high-value

Moderate transit time

Quite high scheduling time
airside with security

No additional cost

High cost
safeguards

98% reliability

Moderate damage

Highest insurance coverage
B rinks-Type Armed

No additional cost

Maximum schedule time
Escort transport

99% reliability

High transit time

Low damage

Higher cost

Highest insurance coverage

Low schedule time

Highest cost

Least damage

Low insurance coverage

Highest insurance coverage No
safeguards
Charter Airplane
additional cost

Lowest transit time

Maximum reliability
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Recommendation
According to the information provided I am willing to propose the following bid –

Product 1
There are two shipping options that I believe are the best for this item.
The first is Airplane Charter, which, while expensive, guarantees delivery within a
few hours, has a damage rate of only 0.10 percent, and is 100 percent reliable.
I highly propose this alternative because even a one-day delay might result in a
loss of millions of dollars, thus a freight savings of $25000 is not a significant
thing.
If they do not want to pay a high delivery charge, they can opt for 1-Day Air,
which costs $1750 and is delivered in one day. However, availability for the same
day is 98%.

Product 2 –
Since it’s an overweight and oversized product I am assuming they don’t need it
frequently.
So, option 2 would be suitable for this type of product, it consists of rail and road
transport, has limited police involvement, requires 1 additional crane, and will
stay in transit for 2-3 months.
However, if Bell thinks that transit time is too high, they can opt for option 4, this
will require them to improve their site as the product will be sent through barge
directly to the customers site from the port in Houston.

Product 3 –
For this product as it contains sensitive corporate information I would recommend
two options –
They can either use the Charter Airplane which costs almost same as the cost of
server ($44,235) but has a transit time of 6 hours, only 0.10% chance of damage
and scheduling time of just 4 hours. However, insurance coverage is $200.
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Or they should pick Team High-Value Air Ride with Security Safeguards, which
costs only $6,500 but has a 1.25 percent chance of damage, 98% reliability and
requires 24-48 hours to schedule.
This results in a three-day delivery period.