Yellow Transportation Inc.: The Tech Leader of the Trucking Industry in
the US
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ICMR HOME | Case Studies Collection
Case Details:
Case Code : OPER032
Case Length : 11 Pages
Period : 1991 - 2003
Organization : Yellow Corp.
Pub Date : 2004
Teaching Note : Available
Countries : USA
Industry : Logistics
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Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Excerpts Contd...
The Technology Angle
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To bring about system-wide changes and provide better quality services, the
company made extensive use of technology. It realized that by harnessing the
power of technology and the Internet, Yellow would be able to turn around more
quickly and reinvent itself to meet the demands of the new economy.
In the mid-1990s, the company launched an initiative called 'Operation Slingshot'.
The purpose of this initiative was to 'slingshot' Yellow into a leading-edge
position in the LTL industry, by accelerating the deployment of technology
within the company and improving relationships with customers.
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To further reflect its commitment to technology, Yellow Corp created a new
subsidiary called Yellow Technologies (it was earlier called Yellow
Services), with a 300-odd member workforce. The primary mandate of Yellow
Technologies was to create technological initiatives that would improve the
processes at Yellow.
Certain conditions were also specified to keep the
organization on its feet. No initiative was to take more that 12 months to
develop and each application developed was to yield at least a 15 % return
on investment. This was adhered to very strictly and when an application
crossed its time frame, or did not add enough value, it reflected on the
performance reviews of the people who developed it...
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Conclusion
Industry sources estimated that Yellow Corp had spent nearly $ 80
million a year on technology since 1994. Long since recognized for its
bright orange trucks, Yellow firmly established itself as the technology
leader in the LTL industry in the early 2000s. Like all other sectors,
the transportation industry was also badly affected by the economic
downturn experienced in the US in the late 1990s and early 2000s.
However, Yellow managed to progress even in this difficult economic
environment... |
Exhibits
Exhibit I: The HUB - And - Spoke System
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