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
Yellow before the Transformation
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Yellow had been operating in the transportation industry since 1926. It had a
set way of doing business, developed over its long years of operation. The
company was also resistant to change and there had been very little change in
the company's way of doing business since the mid-1900s. Yellow had been under
the management of the Powell family since the 1950s, and they ran it like a
family business, with a degree of autocracy.
Years of operating within a regulated industry had also set in a sense of
complacency and Yellow was not equipped to tackle competition or a dynamic
industrial environment.
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Analysts felt that the company did not understand the true implications of
deregulation and continued to operate as though the rates and services of
all competitors in the industry were uniform, without differentiation...
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The Transformation of Yellow
When Zollars joined the company in 1996, he realized that the inherent
weaknesses in the company had to be corrected for it to survive in the
new economy. He realized that Yellow had an inexcusably high defect
rate, and that although it was one of the largest and most successful
companies in the industry, it was not on par with some of the newer
competitors. "We wanted to go from being slightly behind our competitors
to at least being even with them, if not slightly ahead," said Dan
Commiato, Senior Director of e-commerce at Yellow... |
Zollars undertook an overhauling of most of the company's
operational aspects. He began touring the different terminals across the country
to contact employees and speak to them on a personal level, to make them
understand the need and importance for change.
He also understood that the company would not get anywhere without customers and
made attempts to increase the level of customer orientation. From employees
saying "No, we can't" to some orders, the company moved to saying "Yes we can -
and we do" The company's new tag line reflected its commitment to serve its
customers better...
Excerpts Contd...>>
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