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