Yellow Transportation Inc.: The Tech Leader of the Trucking Industry in the US

            
 
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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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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

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.

Operations Management Case Studies | Case Study in Management, Operations, Strategies, Marketing Management, Case Studies

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...

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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