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

Yellow before the Transformation

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.

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

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...

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...

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