New World Van Lines (NWVL) is proud to announce the successful completion of a capstone project conducted by a team of four MBA students from Northwestern University’s Kellogg School of Management.
During an eight-week period, the team of students was tasked with devising criteria to optimize the use of the company’s power-only hauling company, New World Transportation Systems (NWTS), and outsourced hauling in its domestic operations. One of the key challenges which can limit New World’s growth is its reliance on long-distance driving for its moving crews which restricts the effective utilization of its workforce. By optimizing the hauling strategy to include an efficient mix of NWTS and outsourced hauling, New World can offer faster transit times and more flexibility to its customers.
With the use of NWVL’s past operational data, the students developed a set of criteria to optimize the use of NWTS, the company’s own freight hauling company, and outside freight hauling providers during the peak and non-peak season. After discussions with NWVL staff members and industry professionals, the team developed criteria in five key areas to assist in maximizing shipment capacity and profitability:
1. The parameters which should be used to determine whether a shipment should be hauled by NWVL resources, NWTS resources or outsourced.
2. What metrics should be observed to ensure there is a balance of profitability and capacity.
3. What methods the company could use to ensure equipping or equipment discrepancy throughout the U.S.
4. How the NWVL shipment planning strategy should change with cost fluctuations in outsourced freight hauling.
5. When hiring outsourced freight drivers, the team determined whether it’s better to utilize a broker or build relationships with small, independent carriers.
With these insights, NWVL can restructure its existing operational models, and more cost efficiently and time efficiently handle its increasing customer volume during the peak season. To ensure that employees are given the opportunity to thrive in their positions, NWVL has started to implement the results of the study and are excited to see the positive impacts in the future. In the future, NWVL intends to continue investing in research and development powered by advanced data analytics to produce new and innovative ways to improve their services and better serve their customers.
