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  • April 1988 (Revised September 1992)
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Frito-Lay, Inc.: The Backhaul Decision

By: Janice H. Hammond
  • Format:Print
  • | Pages:29
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Abstract

Prior to the Motor Carrier Act of 1980, companies with private trucking fleets were generally prohibited from selling transportation services to other companies. The deregulation of the trucking industry in 1980 allowed private carriers to offer for-hire transportation services. In 1983, as part of an effort to offset the rise in their distribution costs, Frito-Lay considers selling miles on its backhaul lanes to other companies. Frito-Lay management must consider whether the potential revenues from these services warrant the possible degradation of service to Frito-Lay's sales force. If the backhaul proposal is approved, a marketing plan for the transportation services must be developed.

Keywords

Cost Management; Revenue; Governing Rules, Regulations, and Reforms; Marketing Strategy; Distribution; Service Operations; Sales; Salesforce Management; Transportation; Food and Beverage Industry

Citation

Hammond, Janice H. "Frito-Lay, Inc.: The Backhaul Decision." Harvard Business School Case 688-104, April 1988. (Revised September 1992.)
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About The Author

Janice H. Hammond

Technology and Operations Management
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    FLEXE, Inc.: Pioneering On-Demand Warehousing & Fulfillment

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    African American Inequality in the United States

    By: Janice H. Hammond, A. Kamau Massey and Mayra G. Garza
More from the Author
  • FLEXE, Inc.: Pioneering On-Demand Warehousing & Fulfillment By: Janice H. Hammond and James Barnett
  • Precision Paint Co. By: Iavor I. Bojinov, Chiara Farronato, Janice H. Hammond, Michael Parzen and Paul Hamilton
  • African American Inequality in the United States By: Janice H. Hammond, A. Kamau Massey and Mayra G. Garza
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