Free Essay

Celadon/Trucking Industry

In:

Submitted By bigshine71858
Words 1462
Pages 6
Course Project
Lamont Miller
Capella University March 27, 2014
Dr. Jeff Leinaweaver MBA6004-Foundational Skills Business Leaders

Introduction The business I am picking for this assignment is Celadon Trucking they are a company based out of Indianapolis In. This company has been in business for 29 years there doors open in 1985. In this time frame this company has become the largest transporter of truck load freight between Canada and Mexico. They also transport a lot of freight in the lower 48 states. Celadon trucking is one of the largest trucking companies in America. Celadon Trucking is one of North America’s largest and most progressive transportation and logistics companies. The use of the internet has had a big impact on the trucking companies do business now compared to 30 years ago. With the use of internet it has made the trucking industry work easier in many different ways. The use of the internet is helping change the business practices of the trucking industry. Trucking firms use the internet strategic building blocks of distributed access to valuable information, quick communication, and boundary defying connectivity to exploit current resources and capabilities and to explore new internet business opportunities. The use of internet has improved communication and the ability to track loads. Celadon trucking is a company that is publicly traded on the stock market. Since going public in 1994, there revenue has grown from around $95 million to $616 million in 2013 through internal growth and a series of acquisitions. Celadon is a company that helps its yearly revenue by acquisitions of smaller companies throughout a year. Celadon customer base are some of the largest companies in North America.
Use of the Internet Celadon Trucking has many different reasons for using the internet. When you are one of the largest trucking companies in the nation and have the broader crossings than any other company the use of the internet is very important. Celadon carry loads for many different customers that ship within the lower 48 states. A large portion of their loads cross into Canada and Mexico. As a member of Canada’s Partners In Protection program (PIP), a certified member of the Customs Self-Assessed (CSA) program, and actively involved in the new Canadian Automated Customs Initiative (ACI) E-Manifest program, Celadon is believed to be the largest provider of International truck transport in North America with approximately 110,000 annual border crossings (Celadon Trucking, 2014). The E-Manifest program is a very important program that sends all the information to customs viva the internet so the loads don’t have any serious issues trying to cross into another country. Celadon Trucking has a program they call EDI and it’s a computer to computer exchange of business transactions such as invoices, shipping notices and purchase orders in a standardized computer processed format. There are other advantages to using this system. It helps expedite order cycles, reduce paperwork, and reduce payment disputes. These are very helpful when you are running a large business like Celadon. The most important of using the internet is that it can help reduce clerical errors and improve customer service.
Strengths
Celadon Trucking has won many awards over the past ten years. In 2013 they have won awards in many different areas. They have gotten customer awards, industry awards, and employer awards. The customer award they got in 2013 was from Wal-Mart the general merchandise platinum carrier of the year. They got industry awards for inbound logistics-top 100 trucking provider and inbound logistics-green supply chain partner. The employer awards are healthiest employer in America, American heart association platinum fit-friendly company, and top 10 read-up volunteer companies. Awards are a great way to show thanks for hard work and this company works hard to be the best they can be. Celadon Trucking Services is proud to be a Smart-Way Transport Partner. The Smart-Way Transport Partnership is an innovative collaboration between the U.S. Environmental Protection Agency (EPA) and the freight industry to increase fuel efficiency while significantly reducing greenhouse gases and air pollution [ (Celadon Trucking, 2014) ]. Increasing fuel mileage of the trucks also makes the truck more profitable it also lower the emissions of the trucks which is better for the environment. It’s everyone job to help make the world a better place and this company is doing its part to do that.
Weaknesses
Celadon Trucking doesn’t have many weaknesses but the one that they have involves one key area that they need the most. The driver pay at Celadon is one of the lowest in the industry their starting pay for drivers is 31 cent per mile. The average starting pay is 35 cent per mile. The trucking industry has one of the highest employee turnover rate compared to any other job. According to ATA's Trucking Activity Report, quarterly turnover at large truckload fleets – fleets with at least $30 million annual revenue – rose in the first quarter to an annualized rate of 97% from 90% in the fourth quarter of 2012. The rate was the highest it has been since the third quarter of 2012 when it was 104% and just below the average rate in 2012 of 98% [ (American Trucking Association, 2013) ]. This is an issue that all trucking companies face but the higher pay scale will help drivers stay longer.

Opportunities Celadon Trucking will have many different chances to grow across the different markets in the trucking industry. By winning these different customer, industry, and employer awards this will get the attention of new customers. The trucking industry is full of opportunities to grow and find new customers. With the increase in customers they can possibly increase the drivers pay. The use of the internet can help expand the chances of growth by showing what awards that they have won for their service.
Threats
There are five threats that all trucking companies have to worry about even Celadon. The biggest threat they have is the cost of fuel. With fuel costing 4 dollars a gallon plus in certain areas this issue has caused companies closed their doors or sell out to other companies like Celadon. Competition with other trucking companies is a serious threat also because of a bidding war to undercut the other company in rates to haul the loads. Long-Haul shipping is another issue because people don’t want to go long ways from home. The last and biggest threat is a decline in the number of drivers is another threat to the trucking industry. Because trucking has a high turnover, the industry is losing more drivers than it's employing (Kennedy, 2009).
Ethical Questions Using the internet for customer service will it cost people there jobs? With the demand of drivers will the standard be lowered to fill trucks? Is trying to do business cheaper always the best practice? Over the road truck driving is hard on families should it be only for single people? Would increasing the pay scale bring you better drivers? There are many ethical questions that affect the industry. Ethical questions can make the company better if they do the right things when answering the questions.
Propose a strategy for a company’s future Celadon Trucking should keep using the internet the way they are already doing. Trucking is a customer driven industry making the website more customer friendly so they can follow their loads easier. Expand the choices you have to pick from on the website. Expand the choices for drivers to see about the employee information. I think the website is setup very nicely with all the different information you can look up about the company. Celadon Trucking is one of the largest trucking companies in the nation. They lead the trucking industry in international expertise because they have most loads crossing into Mexico and Canada. They are also an award winning company in customer, industry, and employer awards. They are one of the healthiest workplaces in America. They also have the honor of being Wal-Mart 2013 carrier of the year. The EDI system has helped reduce paperwork and reduce payment disputes. This company is very successful because there revenue in 2013 was 616 million dollars. With the strong customer base they have this company will continue to grow and make money.

References

American Trucking Association. (2013, July 11). Truckload and LTL Driver Turnover Rises in First Quarter of 2013. Retrieved from Prnews: www.prnewswire.com
Carey, B. (2005, October 10). Trucking Unplugged. Traffic World.
Celadon Trucking. (2014, March 23). International Expertise. Retrieved from Celadon Trucking : www.Celadontrucking.com
Cullen, J. (2010, September). Socialized Trucking. Fleet Owner. Retrieved from Fleet Owner.
Gripper, J. (2011, June 2). Computer in Transportation. Transportation.
Kennedy, D. (2009, february). Problem in the Trucking Industry. Retrieved from Ehow: www.ehow.com

Similar Documents

Free Essay

Trucking

...Action Jeffrey Wenstrand MGT401: Hazardous Materials Management Instructor: William Cusack February 24, 2014 Action Plan In this paper I will be talking about what to do in case of a fire on our property. I will be preparing an Incident Action Plan for the fire, and I will be explaining everything that you need to do in this event. • Identify at least two incident goals (i.e., where the response system should be at the end of response) and at least two operational objectives (i.e., major areas that must be addressed in the specified operational period to achieve the goals or control objectives). There are two conditions within this scenario that I see wrong. The first thing I see is that the driver was driving too fast for conditions. The other thing that I noticed that might have happened is that he is either really tired, not paying attention to what he is doing, or both. I would also take a look around see any possible cause for why he slid. I would also want to know what the situation was surrounding what he was doing. Was it really icy, or were the docks dry? Did he have help in backing up the truck, or was it in a blind spot that he couldn’t see? There are many variables that need to be considered. • Describe at least two response strategies (i.e., priorities and the general approach to accomplish the operational objectives) and at least two response tactics (i.e., specific methods developed to achieve the response strategies). The first thing...

Words: 887 - Pages: 4

Free Essay

Hrm 520 Assignment 2

...Job Analysis/Job Description Latoya Roberts Dr. Jennifer Young Strayer University HRM530: Strategic Human Resource Management October 31, 2015 Job Positions/Job Analysis The 17 billion dollar franchise model company that most know as 7-Eleven is 82 years old, operating over 36,000 convenience stores across the US with a mission to be better. (Undercover Boss-7 Eleven, 2014). This enterprise offers thousands of different job positions that permits the organization to have continued success. Most organizations perform a job analysis to guarantee that the selection procedures they utilize to choose between job applicants are effective but defensible and measure knowledge, skills, abilities and personal characteristics to perform the job requirements (Stewart & Brown, 2011). The 7-Eleven enterprise has several positions that are essential to the customers, like the Night-shift clerk and the Delivery truck driver. These two positions impact the consumer on different levels, unlike the night-shift clerk the delivery driver has little contact with the client. A delivery truck driver and night clerk are entry level positions. The night clerk ensures that all customers are serviced and that merchandise is readily available for purchasing. Delivery truck drivers are responsible for ensuring products are in the store for the client. Customers expect the store to be opened with proper staffing 24-hours a day and have suitable merchandise to meet their needs. The night...

Words: 1561 - Pages: 7

Premium Essay

Semi Truck Driving Jobs

...(Source: http://www.fmcsa.dot.gov/registration-licensing/cdl/cdl.htm) For most individuals, these requirements are worth the time and cost involved. According to the Occupational Outlook Handbook, the overall job outlook is positive. Depending on the industry, average wages paid for semi truck driving jobs range from $32,460 to $52,200 per year. After gaining some experience as an employee, many drivers choose to become independent contractors and will buy or lease their own trucks. Whether you choose to buy or lease depends upon your creditworthiness and your long-term goals. Leasing can be a less expensive option and is often an easier way to begin for individuals who want to jump start their own business. Lease to buy options are also...

Words: 430 - Pages: 2

Premium Essay

Determining Strategic Direction

...provide the vision, mission, and values for the organization’s that will help determine the strategic direction. A well define mission statement will not only help guide a company to success but also define the owner, employees and also set you apart from your competitors. Before creating a mission statement is important to have a vision statement that will convey what the intent for the future of the company and clarify the organizations beliefs and principles. My vision for my independent trucking business would be “To be the most requested independent driver in central Texas by providing first class transportation solutions.” My long range goal is to broker my own deals with the shippers, drive the goods myself and own my own truck. With the vision statement clarifying my trucking company’s goal and where I want to be in the future; the next step is to make a mission statement to capture the reason to be in business and what will help in making company decisions. Central Texas Trucking Company (CTTC) is dedicated to the principal and philosophy of being the best domestic transportation throughout Texas. As an independent trucker, I will provide transportation solutions with the highest commitment to excellence and integrity. In any business, a vision, mission, and values will help guide the organization’s strategic direction. When seeking direction a business should conduct an assessment internally and externally. In conducting a SWOTT analysis it will help to determine...

Words: 1120 - Pages: 5

Premium Essay

New Technolgy in the Trucking Industry

...New Technology in the Trucking Industry Sheila Hanson Southern New Hampshire University English Composition II (Eng.123) Professor McIntyre December 15, 2014 New Technology in the Trucking Industry Drivers who travel the interstate have shared the road with an 18 – wheeler, which incorporates a large portion of the transportation service industry (also known as the trucking industry), and have witnessed firsthand new technology working not only to protect the driver but you as well. New technology is defined as the specific methods, materials, and devices used to solve practical problems. Research has shown that new technology has been both helpful and harmful in changing the trucking industry, but was needed. The electronic log, an electronic clearance system (also called PrePass), and the on-board computer (also called EOBRs which stands for Electric On-Board Recorder) are some of the new technologies implemented by the trucking industry that are designed to improve safety, productivity, and help the trucking industry keep up with the changes of the manufacturing and distribution industry's choice to keep a lower level of inventory on hand by using the just-in-time business practice. The following table illustrates the major changes to the trucking industry by Congress that required new technology, in order for the trucking industry to comply with the new regulation. Table 1-History of Changes in the Trucking Industry Date | Event | 1935 | Congress passed the...

Words: 2460 - Pages: 10

Free Essay

Women in Trucking

...Women in the trucking industry Women in the trucking industry Reference Page What is the value of the Women in Trucking Association Western Trucking News March 2016 Issue 94 https://www12.statcan.gc.ca/nhs-enm/2011/as-sa/99-012-x/99-012-x2011002-eng.cfm https://www.truckinghr.com/en/content/women-drive http://www.mover.net/movers/news/releases/NationalOccStandardsChart.pdf https://www.thestar.com/business/2016/05/16/trucking-industry-faces-labour-shortage-as-it-struggles-to-attract-young-drivers.html http://www.cnbc.com/2015/12/16/the-next-big-thing-in-us-trucking-female-drivers.html http://breakawaystaffing.ca/women-in-trucking/ The article I chose for this assessment was about women in the trucking industry, and how the Women in Trucking Association (WIT) started. It began with small group of thoughtful, committed individuals who’ve been focused on increasing the percentage of women employed in the trucking industry. The article brings attention to the fact that, although women make up half the labor force, a very small percentage are in the trucking industry. One of the goals the Women in Trucking organization has is to address reasons why women aren’t fairly represented in trucking industry roles. They’ve conducted research to better understand what women are looking for in a company, what values attract them and where to find potential female drivers. The article discusses how some trucking manufacturers are now changing cab designs...

Words: 1498 - Pages: 6

Free Essay

Staffing Plan

...Staffing Plan Peter Adija University of Phoenix Human Resources Management – MGT/431 Instructor David Mallory June 28, 2010 Staffing Plan Huffman Trucking (HT) is a company that has always gone against the grain. It has always taken the bold moves when others remained cautious and fearful. HT flourished through the uncertain times during and after World War II. And midway through 2010 with many economist and pundits forecasting that the economy will not get better soon and may relapse into a “double dip” recession, HT has sought to make the courageous move and take advantage of some of the positive signs in the market and bravely engage in hiring and re-staffing reflecting the company’s goal of expansion. Employees of a company are not just responsible for carrying out their duties while at work; they are responsible for representing the companies they work for on, and sometimes, off duty. Employees today should be aware that what they say and do off-duty could cause them their jobs. Recently a waitress in Charlotte, NC went on the social networking site Facebook, to vent about her tip from a customer. She rudely spoke about that customer and soon management discovered her post. (Frazier, 2010) Some may say this incident borders on issues of privacy but from a management perspective there is the image and well-being of the company to worry about. Employees are an extension of the company. Hiring employees is not just about body counts. A qualified individual...

Words: 1418 - Pages: 6

Free Essay

Driver Retention

...Schedule for Implementing a Driver Control Program MKTG6513 Abstract This marketing plan is used on lessening driver turnover by reducing the communication gap between drivers and dispatchers. For each of the three years of the marketing plan, a trucking company starts with$1,000,000. To prevent repeating prior mistakes which cause drivers to leave the company, effective marketing and promotion which highlight the change in hiring style need to be implemented. To be effective in a trucking company, technology plays an imperative role which is utilized very carefully in this plan to remain within the budget while using most of it. In order to retain and minimize the turnover percentage of drivers, their training is vital, so that they represent the company in a more effective manner and help the company to retain the client. Together, the relationship of drivers with dispatchers and technology suggest the company can generate profit with a moderate rate. The prevalent concern confronting the trucking business is not the mounting fuel and insurance expenses, but rather, the aptitude to entice, recruit and preserve excellent drivers. According to Keller and Ozment (1999), “[1] the cost to replace a driver has been reported to range from 3,000 to 12,000 dollars [1]” (p. 99). Where does one start to better retain a quality driver? Chances are you have many worthy drivers in your fleet, and the odds are even...

Words: 2119 - Pages: 9

Premium Essay

Revenue Recognition

...American Trucking Company has recently been experiencing an increase in stolen loads—a loaded tractor/trailer is stolen and the load sold. The merchandise is often worth thousands of dollars, sometimes exceeding the value of the tractor/trailer. American Trucking, while wishing to recover both the load and equipment, seeks a way to locate the tractor/trailer at all times so they can dispatch their security team to retrieve the load before it is sold on the black market (as well as to retrieve the truck/trailer before it is vandalized). They have engaged the services of Truck Locators, a provider of locating services to the trucking industry. Truck Locator’s Truck Finder services is a one-way messaging service that routes messages from the truck on the road to the trucking companies offices. The trucking company is provided with detailed information: GPS location of both the tractor and the trailer, speed of the truck/trailer, whether the trailer doors are open, how much weight the trailer is carrying, etc. Truck Locators must install a dedicated hardware unit on the truck and the trailer before the Truck Finder service can be used. Customers generally sign their contract on the date of the sale for both the hardware (devices) and for the truck monitoring services. Service contracts generally have a duration of 12 months and are billed monthly. Service and devices are sold at standard rates, but discounts are offered depending on the number of units purchased and placed in...

Words: 747 - Pages: 3

Premium Essay

Nur/405 Persuasive Letter

...quality of air and environmental safety of your resident’s has been a priority on your list of concerns. I recognize and appreciate the efforts the City of Commerce has done by addressing the concerns of the added pollution caused by the trucking traffic and railroad yards. I understand there has been many letters written from the City of Commerce to the Los Angeles City Council regarding the Draft Environmental Impact Report (EIR) that was prepared for the Southern California International Gateway (SCIG) project which addresses the potential growth of the railroad yards that is needed to accommodate the increased rail and container traffic. The increase in traffic will also increase the poor quality of air emitted in the City of Commerce. The lead agency is the public agency which has the principal responsibility for approving a proposed project such as the SCIG. The railroad yards and trucking transportation is the main industry of this city that increases the revenue, but the environment must be a safety priority to your residents. How can the city continue to increase their revenue without continually putting the residents at an increase in health risk due to the smog and carcinogen causing pollution from the trains and trucking industry? The National Environmental Policy Act (NEPA) is a statewide policy that was passed by the United States federal government for environmental protection. The California Environmental Policy Act (CEPA) passed in 1970, which does not...

Words: 885 - Pages: 4

Free Essay

The Driver Bus-303

...THE DRIVER Steve Stevens BUS 303 Any One November 05, 2011   Everyone knows that no matter what side of the world you come from work is a necessity. Without an education finding a successful career path is often a hard route to travel. Training is the ultimate booster in the job market and performance is often based on the level of training you have at that specific task. Now don’t let me lie money doesn’t buy happiness but I surely believe it can help you get the things in life that will make it that much easier. As a delivery driver of a commercial organization you are often required to follow federal and state regulations in order to remain legal. Today you will get an aspect on what it takes to be a driver in the high demand commercial field as well as one of the top liquor distribution companies in the United States. Daily tasks, procedures, and the basic skills needed to perform this job will be discussed during this paper. According to a recent employment opportunity with our organization some of the basic duties and descriptions can be described as but of course not limited to “Perform daily pre-trip and safety inspections on equipment prior to commencing route. Partner with routers to acquire delivery schedule and communicate delays, arrivals, and/or equipment problems as encountered. Drive established route to deliver wine and spirits beverage products to assigned customers” (Southernwine.com, 2013). As stated above this is not the limit...

Words: 1265 - Pages: 6

Premium Essay

American Trucking Company

...The American Trucking Company has recently been experiencing an increase in stolen loads—a loaded tractor/trailer is stolen and the load sold. Loads of merchandise are often worth thousands of dollars, sometimes exceeding the value of the tractor/trailer. American Trucking, while wishing to recover both the load and equipment, seeks a way to locate the tractor/trailer at all times so they can dispatch their security team to retrieve the load before it is sold on the black market (as well as to retrieve the truck/trailer before it is vandalized). They have engaged the services of Truck Locators, a provider of locating services to the trucking industry. Truck Locator’s Truck Finder services is a one-way messaging service that routes messages from the truck on the road to the trucking companies offices. The trucking company is provided with detailed information: GPS location of both the tractor and the trailer, speed of the truck/trailer, whether the trailer doors are open, how much weight is the trailer carrying, etc. Truck Locator’s installs a dedicated hardware unit on the truck and the trailer before the Truck Finder service can be used. Customers generally sign two contracts, one governing the dale of the hardware (devices) and the other providing the provision of the service. Service contracts generally have a duration of 12 months and are billed monthly. Service and devices are sold at standard rates, but discounts are offered depending on the number of units purchased...

Words: 767 - Pages: 4

Free Essay

Werner Enterprises Case Study

...Enterprise Case Study BADM 481 By: Jerry Smith 11/25/2014 Werner Enterprises is a superior long haul trucking and logistics company that was founded in 1956, by Clarence Warner and is headquartered in Omaha, NE. It was started as a company with a single truck and has since grown into the 4th largest trucking company in the United States with 7,300 tractors and 24,000 trailers servicing North America, Asia, Europe, South America, Africa and Europe (http://www.werner.com/content/about/) Werner Enterprises offered their initial public offering in 1986 with only an inventory of 630 trucks. In the 1990s, Werner Enterprises had increasingly moved into specialty trucking, including dedicated fleet services. Innovations such as the company's paperless log system have helped put Werner at the forefront of growth in the trucking industry (http://www.company-histories.com/Werner-Enterprises-Inc-Company-History.html) In mid-1990 they had a little over 100,000 stocks outstanding with a stock price of $3.00 as of November 21, 2014 they had just over 500,000 stocks outstanding with a stock price of $29.08. Werner enterprises has grown to become one of the trucking industry’s leaders by using late model equipment, being a leader and innovator in technology, along with their vast worldwide carriers and providers. Though Werner Enterprises is one of the main leaders in the trucking business they are not without tough competitors. Below is a chart that shows the stock prices of Werner and...

Words: 1627 - Pages: 7

Free Essay

Trucking in the United States

...goods, problems of finding qualified workers, and the chances of an individual getting a job with others competing for the same job. Trucking in the United States Introduction It is widely known that logistics is the life blood of anything major. The logistics and transportation industry in the United States itself equates for $1.33 trillion in 2012, and represented 8.5% of annual gross domestic product.(SelectUSA) From major military operations, to the factory floor; aircraft, trains and trucks are relied upon to bring food, medicine, and building supplies to the people that require them. But many of the logistical options out there have limitations. Airplanes cant land at your local grocery store, and building railroads to every store is incredibly costly and inefficient. Trucking and it's effects That is where the trucking industry comes into play. According to The American Trucking Associations reports, in 2012 alone, trucks moved 9.4 billion tons of freight or 68.5% of all freight tonnage transported domestically, and collected $642 billion in revenues or 81% of total revenue earned between air, maritime and rail industries.(ATA, SelectUSA) With this information, it can be concluded that the trucking industry is very important to the United States economy. An article posted on Overdrive.com stated that if the trucking industry shutdown completely, the supply of gasoline would run out in a matter of hours, manufacturing...

Words: 1006 - Pages: 5

Premium Essay

Walmart Looks Inbound

...This Week 60 years amid the recession. Shipments grew 5 percent from August to September, suggesting retailers expect consumers to keep buying despite the flurry of economic warnings. CHARTER MEMBERS Top 10fleetoperators of chartered vessels, capacity in TEUs, as of Oct. II. MEDrrERREANEAN SHIPPING CO. CMA CGM GROUP APL Container Charter Rates Plunge PLUMMETING RATES FOR c o n t a i n e r ship CSAV GROUP HAPAG-LLOYD COSCO CONTAINER UNE EVERGREEN UNE HANJIN SHIPPING "K" UNE 0 Source: Alphaliner, www.alphaliner.com 300,000 600,000 900,000 1,200,000 1,500,000 charters signal just how great vessel overcapacity has become as carriers struggle to squeeze out better margins on their own vessels. But the falling charter freight rates also reward carriers that have been able to better match their own supply to demand. The average daily rate for a gearless standard 4,250 20-foot equivalent container ship on a two-year charter has fallen by half to about $14,750 since March, according to the Hamburg Shipbrokers Association. Mediterranean Shipping Co. appears to be at the front of the line at the fire sale, followed by Maersk Line and CMA CGM. MSC reportedly fixed three 5,000-TEU ships at less than a third ofthe price they were fetchingfive months ago. Although it denied reports this week that it was adding vessel capacity, CMA CGM confirmed it was "looking at various charter projects with a number of shipyards and financial projects." Carders Scale Back Capacity S...

Words: 909 - Pages: 4