In order for Andy and Sandy to be able to provide Tom Powers with strategies to improve their current situation they must determine how to lower transportation costs in order to remain competitive. Landed cost includes the cost of the product including transportation and any other taxes or custom fees. If they are able to lower the landed cost of their cheese products there will be more of a demand for it. The case study mentions that the processing and quality of the product is not the issue. It seems that their transportation cost is steadily increasing. In order to tackle this issue, they must closely monitor the transit time. If they are able to reduce transit time they can reduce costs as well as avoid stockouts. They need to search for carriers that transport smaller amounts of load. It is possible that their transportation costs are increasing because they are using full truckload carriers and are possibly not able to fill the truck with enough freight.
Different carriers have various transit times between the same destinations choosing the carrier with the fastest delivery time at a competitive cost is key. The faster they deliver the faster the company receives the money for the item. Some transportation companies offer businesses a combined shipment if you ship long haul a couple of times a week. Finding an LTL carrier that provides fast delivery with low or competitive rates is a great way to expand to new locations. To avoid stockouts they can make sure that the pickup and delivery schedules are being followed as expected. They must make sure that they are reliable with the delivery of their cheese products as retailers and customers may opt for Canadian companies. Andy and Sandy should make sure they can provide direct service between their company and the customer as using various methods raises the cost of transportation the faster the product gets to the consumer the more they will want to purchase cheese from Clearfield Cheese Company.