DOUBLE D DRUCKING By : SAMEER KAPUR (A28) Present Scenerio for trucking industry as per Mr. Dean • Strengths• Double D has adopted new equipment technology, computer systems, and management techniques- resulted in customer loyalty and employee allegiance • Never lost a customer and never lost a day to labor disputes • Competition• Long-haul trucking has come under severe competitive pressure from rail piggyback • Expediting carriers, trucking companies that provide rush deliveries, have made significant inroads into the automotive industry, • Vertical integration of trucking companies into other logistics services • A number of regional trucking companies have started warehousing divisions to provide sorting, kitting, (putting pieces together to make up a kit), and cross-docking (moving freight across a dock to a waiting truck) • Adding third-party logistics divisions to manage a shipper/receiver’s transportation and storage activities • Few trucking companies have started air carrier divisions, freight-forwarding services, and logistics information services Do you agree that the logical strategic thrust for Double D is to vertically integrate and provide other logistics services? Why or why not? • YES, because • Competition • Sub contractor to logistics company • Growth potential low • Companies focusing on core competencies and would like to outsource most of the logistics Describe the analytical process you would use to evaluate alternative logistics services being added to Double D’s market offering? • Goal : Sustained earnings and Growth • Analysis : • Qualitative • Corporate Strategy aligned • Vertical integration • Quantitative • Revenue Growth • New Clients • Revenue expected to grow more vis a vis cost as the services are added Value-added services - recommendations that the strategic planning team should consider for Double D • Consultancy • Purchasing / Order Consolidation / Shipping • Storage and distribution • Gradually move to Export / import air freight and sea freight • Customs brokerage THANK YOU!!!