Competitive Priorities

Started in 2003, Fast Track Logistics is part of the freight broker industry that provides the service of coordinating, packaging, and shipping goods. As a smaller sized company with only five employees Fast Track is projected to make seven million dollars in sales this year. The company’s success comes from its main competitive priorities; quality and on time delivery while less focus is placed on the cost and flexibility aspects of their business model.

Top Competitive Priorities: Quality and On-Time Delivery

     For Fast Track the most critical operational aspects in gaining orders and in retaining customers are based on the ability for potential customer to submit online service quotes. From this point on the process begins and potential customers are notified that they will receive an estimate in 72 hours or less. The automation of the quote to delivery process has been perfected by Mr. Turso and it allows his company to maintain quality in its practice and assure on-time delivery on a large majority of orders. Online communications is kept consistent with customers because “customers want it that way- quick and easy” and the use of their online database strengthens both competitive priorities of quality and on-time delivery.

      Fast Track Logistics has a very small staff of five people and management does not plan on growing any larger in staff thus to compensate and continue serving their clients they rely heavily on technology and must continue to do so thru maintenance, updates and so forth.  Their key measure of improvement or success is through their customer satisfaction; since price is fixed they must provide excellent service that means they assure that client’s products are received in a more than adequate amount of time and most importantly that assure that it is received intact. Without a high standard of quality, customers would likely be unsatisfied and not continue to use Fast Track in the future.  Additionally, as a shipping company, it is important for orders to arrive on time; delays in arrival can again negatively impact customer satisfaction and ultimately result in a loss of customers. With customer feedback which has constantly been positive, the company gains a confidence that they are doing something right.

Less Focused Competitive Priorities: Low Cost and Flexibility.

      On a monthly basis Fast Track receives roughly 1,500 requests for price estimates; of those requests twenty percent become customers. Estimates are final; there is no negotiation on price which indicates that low cost is not recognized as a competitive priority for this company. The time constraints that can accompany the process of continuously seeking low cost are eliminated and allow more time to be focused on Fast Track's higher priorities; quality and on-time delivery. Customers are required to pay up front, this eliminates any bad debts and accounts receivable and although this does help with the low cost function of competitive priorities it is only because Fast Track wants to make sure that it is dealing with quality customers. What management is trying to accomplish progressively is the continuation of automation in hopes that aside from improving quality, a byproduct of this practice will help reduce costs. Fast Track's client base is comprised predominantly of military contacts that are derived from Government Liquidation Auctions. The contract that Fast Track Logistics has established allows the freedom of focus in its practice. Flexibility is not a concentrated focus of competitive priority for this company because it has established itself through the logistical coordination of these government auction buyers and maintains a monopoly on this certain area of purchasers.

          Although, Mr. Turso is always trying to improve his company he reiterated that he will not sacrifice his main priorities in pursuit of improvements in the other categories. The descending order of competitive priorities for Fast Track Logistics will stay as; Quality, On-Time Delivery, Low-Cost, and lastly Flexibility until the day that Mr. Turso decides that a change is needed.