This case tests the candidate's ability to work with unfamiliar domain knowledge (trucking operations), perform multi-step financial calculations across cost structures, and synthesize findings into a coherent strategic recommendation. The case emphasizes understanding unit economics (cost per repair by type) and making investment decisions based on comparative analysis rather than surface-level metrics.
Our client is a U.S. transportation company with a fleet of over 2,000 trucks. A fleet is the front part of the truck (where the driver is) but does not include the trailer part. This fleet is split up among 10 locations in the United States.
An example of how this works in practice is the following: the fleet will depart from one location (where all trucks are parked), pick up a customer load (e.g., at a distribution center) which becomes the trailer part, deliver it to another location (e.g., retail store), and then return the fleet to its original location.
Over the past year, the company has been experiencing declining profitability. The client is looking to turn this around and increase profitability in their trucking business.
Note: The case document states ’there is minimal clarifying information for this case.’ The case provides specific cost data in calculation sections: