J.B. Hunt Case Management Failures: Lessons Learned in STR 581

Competency 3 Reflection Jennifer Weber University of Phoenix STR 581 Mark Vitale 13 January 2024

Competency 3 Reflection Examining How Case Management Failed J.B. Hunt is an extremely successful Fortune 500 company, but not without failures along the way. J.B. Hunt and BNSF have been in business together ever since J.B. Hunt had developed its intermodal division and this is where one of their failures takes place. J.B. Hunt attempted, and failed, its dispute with BNSF Railway over the revenue division of their intermodal partnership. The dispute lasted for some years resulting in the arbitrator in the case deciding that Hunt had to pay more for using BNSF rail network (Kingston, 2018). This resulted in J.B. Hunt having to pay out $134 million in 2017 (Kingston, 2018). There were a few factors that contributed to this failure. (1) J.B. Hunt and BNSF had different understandings of the contract they had in place. The contract was signed in 2004 with a 20-year term (Kingston, 2018). The contract did not have specific terms on how to adjust the revenue split over time as market conditions changed (Kingston, 2018). (2) Rather than communicating or collaborated effectively to resolve their differences, they resorted to arbitration, which is costly and time consuming (Kingston, 2018). (3) J.B. Hunt did not adapt properly to the changing dynamics of the intermodal industry (University of Arkansas, 2021). They did not consider their competitors. Competition from trucking and other railroads increased. There are a few things J.B. Hunt could have done to prevent failure, as well. (1) The two companies could have renegotiated their contract terms to reflect current and future market conditions (Kingston, 2018). They could have also renegotiated to include a more clear, concise, and flexible terms for revenue sharing (Kingston, 2018). (2) The two companies could have

invested more into innovation and technology to improve their intermodal service and efficiency, this would also differentiate them from their competitors (University of Arkansas, 2021). Alleviating Stakeholder Concerns One of the most recent changes within J.B. Hunt involving different stakeholders took place near the end of 2023. This change was the announcement of Safety and Sustainability leadership changes. There are many stakeholders that were affected by this change. Below are a few of those affected: 1. Craig Harper is the former Chief Sustainability Officer at J.B. Hunt. He retired from his position after 31 years working with the company (J.B. Hunt, 2023). Concerns Mr. Harper may have had would include his legacy, his successor, and his future plans. His concerns would not be how his successor would fail, because Mr. Harper likely had a hand in choosing his successor, but more of how they would help the company grow and succeed. 2. Greer Woodruff became the new Executive Vice President of Safety, Sustainability, and Maintenance, assuming Mr. Harper’s responsibilities in addition to his own (J.B. Hunt, 2023). I think the main concerns for Mr. Woodruff would be more towards his increased workload since he took on Mr. Harper’s responsibilities on top of his own. I know may also have concerns about what is expected of him from his superiors, his peers, and his employees. We all expect him to be as successful or more successful than Mr. Harper. 3. John Roberts, CEO of J.B. Hunt, who worked with Mr. Harper most of their careers. Mr. Roberts praised Mr. Harper for his contributions and expressed confidence in an announcement that was emailed to us employees, expressing his confidence in Mr.

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Woodruff’s abilities to take this position. Concerns he may have would be concerns involving the transition, the continuity, and possibly the impact of change. 4. J.B. Hunt employees were affected by this change. Those most affected were the drivers whose concerns may have been their compensation, future opportunities, and how the changes would affect both of those concerns. 5. J.B. Hunt Customers and Shareholders were also affected. Customers who rely on supply chain solutions and intermodal services concerns may be the quality or reliability of services, as well as the cost (Solomon, 2022). All the concerns listed above could be addressed with clear, concise, and transparent communication. One strategy that could be used is internal communication. When this change was happening, emails were sent out to the employees informing us of the changes and congratulating those who were making the moves. J.B. Hunt likes to keep moves like this very close to the chest so we will usually have an idea, but nothing is confirmed until the change happens. The other strategy is to use external communications. J.B. Hunt put out a press release upon the change happening explaining the changes take place. I am sure they reported to other external outlets such as Indeed or their Facebook page (if they have one).

References J.B. Hunt. (2023, December 14). J.B. Hunt Announces Safety and Sustainability Leadership Changes. https://www.jbhunt.com/our-company/newsroom/2023/12/leadership-change Kingston, J. (2018, December 17). JB Hunt takes $134 million hit as BNSF dispute moves toward conclusion . Freight Waves. https://www.freightwaves.com/news/trucking/hunt- bnsf-intermodal-dispute-dec18 Solomon, M. (2022, November 01). J.B. Hunt Executive Pushes ‘Network of Networks’ to end Supply Chain Disconnects. Freight Waves. https://www.freightwaves.com/news/jb-hunt- executive-pushes-network-of-networks-to-end-supply-chain-disconnects University of Arkansas. (2021, September 28). The Overlooked Secrets to J B Hunt’s Sustained Success . https://walton.uark.edu/insights/posts/the-overlooked-secrets-to-jb-hunt- sustained-success.php

STR 581 Competency 3 Reflection

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