Assignment #3: Powell Logistics Case Study
A. В Identifying the issue
Instant issue is always to make a decision for the future of the family organization. B. Analyzing the Case Info
2. The pickup truck transportation industry is a vital part of the Canadian economy with $43 billion in sales annually and employing four hundred, 000 persons * The for-hire sector accounts for 40% of the transport industry in Canada * The for-hire sector has 2 service offerings: TL вЂ“ Truck weight, only total load between 2 places and LTL вЂ“ Lower than load, get from different locations reorganize then deliver to end consumer. Traditionally LTL charge even more. * Transportation industry suffering from 3 major issues
* Expense of fuel, increased operating costs forced to put into action fuel overcharge * Canadian dollar value increase more than US dollar, affected expense advantage of Canadian manufactured merchandise, decreasing copy of goods between Canada and US 5. Shortage of qualified truckers with aging staff, increasing income * Good competition in trucking:
* Traveller's Transportation Providers, long standing same market since Powell, services offering included small customer orders applying vans which Powell did not offer 5. Yellow Transport, global competition, publicly traded with large financial resources, high technology using on the web tools reducing costs 2. Powell in operation since lates 1970s, with steady growth, using a fleet of right trucks, tractor trailers and brokerage providers. * License to carry basic freight through Canada as well as the US. * Midsized company showing significant profitability, concentrating on LTL providers for higher margins though more effort and competence was instructed to manage the hundreds * Modern technology including mail and satellite tv tracking in place as well as extensive trucking knowledge * Family business with eldest son acting while Vice President of Operations with many years of experience and no formal business training,...