Powell Logistics Inc.Case Analysis
Company History Founded in 1979 by John
Powell In 1983 bought first truck
and established as a for-hire motor company
Provides local and regional services in the Greater and Southern Ontario
Relies on trucking experience and technology
The Situation On August 3, 2007 John Powell
sat in his office thinking of the task ahead of him. Recently, their have been major changes in the for-hire trucking industry, and he wondered how this would affect his plans to expand the business and simplify operations. After 50 years in the trucking industry, Powell also wondered whether it was time to step down as president and pass the business to someone else.
Trucking Industry Consists of many carriers that move goods by
means of road transportation. Vital part of the Canadian economy. Offers Truck load and less than load services Industry is facing three major issues. Transportation industry is high regulated by
Canadian and U.S. governments.
Family Affair Major goal is to
support himself and his family
John Powell has held many positions in the community
His children also hold positions in the company
Competition Extremely
competitive environment
For-hire segment defined as lanes
Two major competitors• Travelers
Transportation Services
• Yellow Transportation
Current operations Clientele includes
various sized companies
Uses mostly direct selling
Employed 80 drivers that work 5 days a week
Sophisticated software that helps with routes
Current operations At the end of the shift drivers were required to empty
the contents of their truck into a rented warehouse. Drive the truck back to the head office which was 3.2
kilometers away. They left it there for overnight repairs and
maintenance. Next morning they picked up the trucks at the head
office in the morning and returned to the warehouse to start their shifts.
30 minutes extra everyday on top of their regular shift. Forcing overtime to be paid.
Future Operations Drivers would not have to
unload trucks for repairs Would not have to drive 3.2
kilometers Would not waste 30 minutes
a day. They would drive to the main
facility and have the truck repaired then go back to work the next morning. A lot less loading and unloading.
Conclusion Buy new
warehouse and combine operations
More organized company structure.
Sell the business
Succession