National Air Express

National Air Express Case Study

Martha Ochoa

Benedictine University

MBA630: Operations Management

May 5, 2012

The business problem facing National Air Express is the inability to pick up customers’ packages on the day the pickup is requested. Another problem is that the company sometimes does not arrive at each location on time. Many customers request their pickup as late as possible, which causes a problem in dispatching the trucks. Frank Smith, the station manager, is considering adding capital expense and is concerned that productivity has not increase to warrant such an expense. National Air Express has to determine how to increase their efficiency and productivity without decreasing or not appeasing their customers. The company has to have an alternate plan when inclement weather keeps them from making their pickups on time.

National Air Express is in the express delivery services industry. It has companies all over the country. This case in particular involves the Chattanooga, TN. office. There are 24 trucks that handle door-to-door overnight air-express delivery. Pickups are usually between 3pm and 6pm., Monday thru Friday. Inclement weather has been a factor for the company in failing to meet customers’ request for scheduled pickups. Call- in pickups is dispatched by radio to the driver in between their normal daily pickups. Drivers are responsible to deliver supplies to customers as needed. National Air Express strives to offer quality service and value for its customers. They are not meeting this mission statement. The company views itself as a low cost operator in the industry. This industry is highly competitive which generates annual revenue of approximately $180 billion. There are over 7,500 companies in this industry. Some of its competitors are UPS and FedEx. Price, reliability, quality, and services determine the profitability of a company. This industry transports...