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Powell Logistics Inc.

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.

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Powell Logistics Inc.

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  1. Powell Logistics Inc. Case Analysis

  2. 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

  3. 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.

  4. 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.

  5. 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

  6. Competition • Two major competitors • Travelers Transportation Services • Yellow Transportation • Extremely competitive environment • For-hire segment defined as lanes

  7. 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

  8. 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 overtimeto be paid.

  9. 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.

  10. Conclusion • Buy new warehouse and combine operations • More organized company structure. • Sell the business • Succession

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