Powell Logistics Case Summary
Powell Logistics Inc.
Executive Summary
Powell Logistics Inc has been in the trucking business for over 50 years. The president and founder, John Powell finds himself in a dilemma as he has a difficult decision to make. This dilemma relates to making the right strategic choice for future of the company he started and grew. With the major changes happening in the trucking industry he wondered whether it was time to expand the business and simplify operations or to step down as president and pass the business on to someone else. Having shown growth over the last few years, this is a great time to simplify operations and expand Powell Logistics. A new centralized facility needs to be constructed, services to be expanded and new online tools need to be added to …show more content…
Environmental & Root Cause Analysis
1. Competition
- Customers have many available option for transporting their goods so this makes
the transportation industry highly competitive. The main competition Travelers
Transportation Services offers lower prices and have added value services (ie:
small expedited services).
2. Increase in fuel/operating costs
- Over the last few years the cost of fuel has increased due to the supply of oil,
this has lead to operating costs for all carriers to drastically increase.
3. Rise in value of the Canadian Dollar relative to the US Dollar
- Hurts the manufacturing industry in Canada as it decreases the cost advantage
for American companies to manufacture goods in Canada. Affects the
transportation industry directly as they facilitate the transfer of goods between the
two customers.
4. Potential shortage of qualified drivers
- With the current work force aging and the decline in popularity of this line of
work there is expected to be a shortage of qualified drivers. Experts predict that a
shortage of drivers will have direct affect on the wages driver will be paid leading
to increased operating
Executive Summary
Powell Logistics Inc has been in the trucking business for over 50 years. The president and founder, John Powell finds himself in a dilemma as he has a difficult decision to make. This dilemma relates to making the right strategic choice for future of the company he started and grew. With the major changes happening in the trucking industry he wondered whether it was time to expand the business and simplify operations or to step down as president and pass the business on to someone else. Having shown growth over the last few years, this is a great time to simplify operations and expand Powell Logistics. A new centralized facility needs to be constructed, services to be expanded and new online tools need to be added to …show more content…
Environmental & Root Cause Analysis
1. Competition
- Customers have many available option for transporting their goods so this makes
the transportation industry highly competitive. The main competition Travelers
Transportation Services offers lower prices and have added value services (ie:
small expedited services).
2. Increase in fuel/operating costs
- Over the last few years the cost of fuel has increased due to the supply of oil,
this has lead to operating costs for all carriers to drastically increase.
3. Rise in value of the Canadian Dollar relative to the US Dollar
- Hurts the manufacturing industry in Canada as it decreases the cost advantage
for American companies to manufacture goods in Canada. Affects the
transportation industry directly as they facilitate the transfer of goods between the
two customers.
4. Potential shortage of qualified drivers
- With the current work force aging and the decline in popularity of this line of
work there is expected to be a shortage of qualified drivers. Experts predict that a
shortage of drivers will have direct affect on the wages driver will be paid leading
to increased operating