ddba8160-sustainable solutions paper outline-05182010
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Sustainable Solutions Paper
Lawrence A. Reeves III
DBA Strategy
Denise Land
February 19, 2012
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Sustainable Solutions Paper
The changing of the logistics climate with information and technology is helping
companies to have better information on conducting everyday business and make smarter
decisions when it comes to moving freight about the country. How will Werner use their
current system to help the divisions make effective and efficient decisions or will they need to
buy into a new system? The growth of Werner will be its people, systems, and sustainable and
repeatable business. The purpose of writing this paper is to lay out a plan that will allow Werner
to explore some strategies suggested to help them grow the value added services division over
the next 5 to 10 years.
The major focal points of the paper will include the Executive Summary, analytical
approach of Werner Enterprises business strategy from a couple of different analytical tools such
as the general force and detailed SWOT analysis. The general force analysis will measure the
remote external environments and the Porter’s five forces will measure the external industry
environment. The SWOT analysis will explore the strengths, weaknesses, opportunities and
threats of Werner Enterprises. The paper will highlight Werner’s strategy and how does it align
with the vision and mission of the company.
Executive Summary
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Werner Brokerage is a segment of business for Werner Enterprises. For the last six years,
it has been a viable department for the company future growth will come from this department.
The paper will outline the external forces that will have an effect on the brokerage department.
The strengths and weakness are discussed as the opportunities and threats that are surrounding
the success of brokerage.
What strategy will be determined? The strategy in in place is working for the company;
however, tweaking needs to take place to stifle compliancy and re-energize employees, create
and develop a relationship focus strategy with customers and carriers. Brokerage managers need
the authority to talk to customers so that they have direct access and being to capitalize in
opportunities. An action plan and the determining the resources needed to handle the new
demands placed on the brokerage department.
Summary Focus
The stakeholders are important to the success of Werner. The culture is beginning to
mesh with the Werner brokerage arm the focus is how continue to grow brokerage to be the
leading department within Werner. The entrepreneurial risk-taking attitude needs to be injected
into the other departments within the company to take freight. What strategy will brokerage need
to take to become the premier leader within the industry?
Key Takeaways
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Werner Brokerage visions are in alignment with the vision of the Werner. Werner
brokerage has some areas where they need to address to become stronger. Brokerage has a great
position by converting freight from asset side of the company. Brokerage always has a warm
call, because of the customer we do business for already.
Integration of Concepts
Werner’s strategy has to be in review periodically to make sure it is lining up with the
companies goals and vision. If new processes are created and developed then it should be
advantageous for the company and nor a detriment. Before a process is put out to the
organization, try in a small depa1tment before releasing to the whole company.
Stakeholder Identification and Value Analysis -Part I
What is a Stakeholder? "A stakeholder is anyone who affects or is affected by an
organization, strategy, or project." (Stakeholder, 20II ) Identifying stakeholders can be
painstaking if they are not easily identifiable and creating mind maps as in figure I. "The OGC
suggest that the it can be helpful to put stakeholders into categories
• Users/beneficiaries• Governance (steering groups/ boards)• Influencers (trade unions/ media)• Providers (suppliers/ partners)."(Stakeholder, 20II)
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Werner Enterprises recognizes the stakeholders who have an effect on their eost and
service outcomes for their business. Werner Ente1prises has a valued interest in their
stakeholders:
• Procurement
• Vendors
•Transportation suppliers
• Customers
• Distribution facilities
A value analysis 'identifies and selects the best value alternatives for designs, materials,
processes, and systems' (Business, 2011). The decision made by the Werner and its employees
of how to conduct business are determined on the market conditions, the amount of freight
available. These events have an effect or caused by the stakeholders. The other stakeholders
are the employees, stockholders, and the community. Each of these groups will have a vested
concern in the Werner’s success.
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Werner Enterprises uses extensive amount of systems to communicate with and to service
the stakeholders. "Werner Enterprises transportation management system (TMS) solution is to
connect the many partners that have input on the freight movement process"(Werner, 2009). The
TMS can interface with the most basic system that stakeholders uses to exchange information
such as electronic data interchange (EDI), email, instant messages, or any other type of
connectivity hardware or software available.
The employees of the company are in small groups to handle the different stakeholders.
The employees within the company work directly with customers. Supplier, shippers and carriers
to handle the day-to-day decision that will generate revenue stream tor Werner.
Werner Enterprises major customers are Dollar General, Wal-Mart, Pamida, Navistar,
Ryder-D r. Pepper, and UPS. Theses stakeholders are affected by the service of Werner. The
impact can be positive or negative to those companies since they rely on the products. Werner
schedules pick-ups from the vendors of these customers. The carrier partners or Werner's assets
and dedicated fleets to haul the products to the desired delivery locations and tracking of these
drivers are conducted by computer systems based on the trucks. The TMS system helps
customers to login and see the progress of their shipment from shipping point to final destination.
The employees of Werner Enterprises call the carrier partners and then the information is
manually updated in the system. The systems that Werner utilizes, lags behind other companies
that are in the 3PL arena, and in line with the other major companies from an asset and dedicated
mindset.
Enterprise Level Strategy
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The three divisions of Werner is the asset, dedicated, and value added services (VAS).
Werner has three divisions that is a depiction of their mission and values statements. Werner
mission: "To deliver value to our customers, business partners and shareholders through leading
edge global supply chain solutions that exceed expectations and promote safety while we remain
customer focused and asset-backed" (Werner, 2011). Werner's vision: "To be recognized as a
global logistics partner providing customized supply chain solutions that manage cost, improve
visibility and pursue continuous improvement throughout our customers network" (Werner,
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2011).
In 2006, the VAS arm was added to offer Werner stakeholders another product that will satisfy
their logistical needs. The value added services is made of brokerage, intermodal, and
LTL, and specialized services. Werner Enterprises strategy is to grow is to put more focus
on growing this segment of the business with brokerage leading the helm. Werner has
hired top talent across the country to run the satellite offices to capture business across the
landscape. Werner stated that they would not add to the 7300 pieces of equipment they
currently operate.
Brokerage goal is to create partnerships with other carriers, find niche lanes for those
partner carriers, and to leverage costs. The strategy is to use the dedicated fleet to move freight
through brokerage to make more money for the company per transaction, build power only fleets
in local regions, and conversion of asset freight into brokerage freight.
Culture Type
The culture of the industry is mixed there are large and small companies from assets
based to 3pl covering the landscape. Majority of the 3PL's are aggressive, high-risk takers, the
pure 3PI companies has no assets, and they use their relationships with partner carriers to haul
their freight. The asset-based companies tend to be more conservative. Werner is a family
owned and operated company that is publically traded. The company's culture is very
conservative and that plays havoc on the brokerage side of the business. The entrepreneurial
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spirit of the brokerage department is stifles because of the risk protectant rules Werner has
created to protect their assets.
Integrated Concepts from Readings
The strategy and the mission and vision statements are aligned. The company may have a
few deterrents; however, overall the company tries to adjust. The problem is that they wait to
after a serious incident happens to do that. Another problem the current model for brokerage
breeds complacency and the sense of urgency and the ell.1ra effort to buy better has diminished
New strategies have been discussed to find ways of motivating employees to take on additional
freight. The other issue is that qualifying new carriers is arduous and lacks the fortitude to
establish new guidelines so that Werner brokerage could pump more equipment into the system
to leverage cost to customers and have more power to keep the rates down in particular markers.
Evidence and Implications
Werner is a debt free company. Werner owns all of its equipment and buildings and they
will protect their assets. They are ultra conservative when it comes to lending credit to
customers. Werner is very strict on the process for approving carriers. The company will not put
itself into jeopardy; they will cautiously look at opportunities to make suet it benefits the asset
side of the company. Brokerage has grown over the last six years; however, the division grows
but it grows more if they had its own sales force. The culture of the company would not love it.
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General Force Analysis: External – Remote Environment
General Force Matrix Analysis
The trucking industry has undergone many changes in the last 5 years. The American
Transportation Research Institute (ATRI) believes "that the top 10 challenges that the trucking
industry will face is fuel cost, economy, driver shortage, government regulation, hours of service,
congestion, tolls/highway funding, environmental issues, tort reform, and onboard truck
technology" (IMT, 2008). Werner has experienced all of these challenges and some they have
found solution s to stave off negative effects. With the VAS division, Werner has made some
strategic decision to keep its cost low. According to ATRI stated that he two biggest challenges
that the trucking industry faces is the rise of fuel cost and the economy; however, all of the
challenges are interconnected to each other. To explore further the different external forces that
affect Werner.
Economics. According to the American bankers association the economy expects to grow 3.3%
over the next 8 years. Trucking bankruptcies are beginning to decline and a number of small
carriers are entering to the market. Government fleets are struggling due to that the government
is trying to control cost through the economy and they understand the different market
fluctuations. Credit has tightened over the last few years and 2/3 of all the carriers expect credit
to get even tighter.
Trucking fleets will have a higher age than that of before. The average of trucking fleets will
increase from 4 to 5 years to that of 8 to 9 years. New truck market is picking up due to the new
regulations standards set by the government with emissions, electronic tracking, and trucks that
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will be more fuel-efficient. Trucking companies will look towards owner operators to help build
their fleets.
Werner is a debt free company and they have the ability to buy new equipment at whim.
Werner sells older equipment to smaller companies and they will help finance for carriers who
do not have a strong enough credit rating with the traditional lending institutions. Werner also
uses brokerage to move freight through partner carriers, a power only division, which utilizes
partner, carries to haul Werner trailers, and owner operators who move freight for Werner Blue.
The economy is increasing slowly, however cost is increasing at the same time.
Fuel cost, consumption has risen, and it is a challenge to the industry as a whole. Of
course, these are predictions and not written in stone here in 2012 the fuel coat are not far off.
Economists are predicting that fuel could approach $5 a gallon by mid-summer. According to
Lockridge of heavy duty trucking journal in 2008:
• "DOE upped forecast for 2011 to $3.40 average, $3.52 for 2012• DOE forecast: crude to average $93 per barrel in 2011 , $99 by fourth quarter
2012• Experts predict $1 00-barrel oil this spring• Will fuel go as high as $5 a gallon next year?• Long-term: Oil prices of $113-$135/ barrel by 2035 in 2009 dollars (International
Energy Agency)" (Lockridge, 2008)
Werner Enterprises has cut down on the amount of dead heads miles they send their
tractors to conserve fuel cost and consumption. Trailer skirts and other measures to keep down
the wind for causing drag to help and aid in conserving fuel are being explored. Werner
Enterprises also has been considered a top I 00 3PL company for 5years in a row. According to
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Lisa Stratton of Inbound Logistics: "But it is just as important in some cases more important for
a logistics partner to act as a business change agent, driving their customers' ability to match
demand for their products more closely to supply, aligning enterprise operational performance to
the larger economic trend. That is what Werner Enterprises does, and why we are happy to
recognize it as a 2011 Top 100 3PL" (WSJ, 2011).
Technology. The technology currently in use by Werner is a TMS system that allows brokerage
to track and trace customer freight, build lanes, and house data from line haul rates, fuel cost, and
the frequency of carriers hauling freight for Werner. The system works in conjunction
Microsoft tools to export information to be able to make strategic decision to price
new and existing business. 'The technology and information revolution has greatly improved the
accuracy of shipping data and the speed with which this information can be shared. These
innovations, in turn, are allowing information to reduce the amount of on-hand inventory needed
for operations"(IRS, 20II).
The emergence of tablets and smart phones allow brokerage managers to engage the
business units while making calls to customers and partner carriers. The limitation with
brokerage within Werner Enterprises is the high level of manual input within the system. The
brokerage industry as a whole suffers the same fate. 3PL hire smaller companies to haul freight
who do not have the tracking technology and the 3pl do not have resources or the system to keep
track of the thousands of carriers. Subsequently carries are not going to carry 4 of five different
QUALCOMM's or tracking devices into their cabs.
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Demographics / Social / Culture. The demographics for brokerage is wide and varied. The
majority of the brokers are usually aggressive and entrepreneur in nature. The average lifecycle
of brokers are 3 to 4 years before they start going elsewhere. Werner Enterprises brokerage
agents are above the average. The brokerages managers within Werner have an average of 15
years' experience. With this wealth of experience Werner has experienced growth and becoming
a major player in the 3pl community.
The brokerage culture does not mesh well with the conservative corporate nature. The typical
broker is always busy negotiating deal s with carries, soliciting customers for new freight, a
looking for ways to source new carries. The culture in Werner is that each process is segmented
and individuals are grouped into the process that they will handle. In the midst the success of
Brokerage in Werner has a viable team in place that is educating others within the corporate
structure to find ways of meshing both natures together.
Government / Legal / Military. . In the last couple of years reform from the government have
taken place in many areas of transportation, Brokerage is highly impacted because of the closing
of many carriers or changes in authority. More trucking guidelines and proposed regulations than
ever: CSA, Hours of service (HOS), Electronic on board recorders (EOBRs), speed adjusters,
fuel economy, texting, and mobile phones. The CSA put fleets under more inspection than
previous system Maintenance focus is known placed into carriers hands on maintenance Hours
of service proposed changes and the impending driver shortages over the next several years.
"Compliance, Safety, Accountability. (C.S.A.) is a new safety program from the Federal Motor
Carrier Safety Administration (FMCSA).
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• The goal is to improve safety by reducing crashes.• New enforcement and compliance model that allows the FMCSA and its partners to
contact a larger number of carriers/drivers.• Intended to address safety problems with carriers & drivers before crashes occur"
(Werner. 20 II).
According to Lockridge:
• First-ever fuel economy proposal for commercial tmcks, starting in 2014• Fuel and emissions savings between 7% and 20% 2010-1017• Improvements to engines, tires, aerodynamics, reduced idling• Trailers not covered• Could mean fewer offerings from truck and engine
Government regulations should regulate certain areas but not to the point where business will be
impacted to the point cost are driven up. Safety is a major issue in the trucking industry, and not
all miles or changes is beneficial to the industry as a whole. The new proposal on the hours of
service affects the shipper, carriers, and consignees to longer transit times in moving freight.
Werner drops trailers at major customers and set up dedicated fleets, power only solutions to
work within the new government regulations with the hours of service and to cut cost on fuel.
Brokerage has many carrier partners and if one carrier cannot meet the demands, they have the
ability to go out and find another carrier who can meet the demands.
Physical Environment. Werner operates in all weather. Weather can have impact on the on
time delivery of freight. Customer demands of making pickup and delivery times are important
because a plant could be shut down or a store out of product. Werner Brokerage relies heavily
on communication from its carrier partners and their ability to provide a service. Mechanical
failure, driver fatigue, DOT inspections all can impede the transit of products from the shipper to
the consignee.
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The stress levels in brokerage are usually high because of the limited control of the
equipment. Driver retention and inexperience plays havoc as well. In the next 8 years many of
the drivers will retire or would be deemed inoperable because the drivers might not meet the
required CSA standard.
Implications of General Forces (6 points)
Werner brokerage has a seasoned management team that has seen and weathers many
changes in the industry. There are new occurrences that will challenge the fortitude of the
management team. When new challenges arise there, new solutions are created.
Threats. The treats that will affect Werner brokerage are higher fuel cost, carriers going
out of business, customers wanting only Werner assets. Fuel cost will have to be taken into
account when negotiating with partner carriers and biding on freight. Carrier cost structures have
changed to cover the fuel and maintenance cost. The new climate has allowed partner carriers to
become better educated on how to run their business. Carriers going out of business will increase
the amount of drivers going out on their own; however, it does not guarantee great service.
Another threat is losing great talent to other companies because of better pay or
opportunities. The brokerage market is lucrative if the business model is something that is
workable. The challenge is that the industry is losing a lot of talent because of the stress levels
that is inherited from brokering freight.
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Opportunities. The opportunities that Werner brokerage has are vast because of the
Werner asset name. The advantage Werner brokerage has over some of the pure 3PL is the
ability to get in the door because of the other product lines. Most customers now are looking for
asset-based companies to partner with. The TMS that Werner Enterprises offer to customers is
another opportunity for Werner Brokerage to obtain freight. Customer who are looking for single
source options will Werner Enterprises to come in and develop a plant that will allow carrier
partners to haul.
Another opportunity for brokerage is to fill in the gaps where Werner Blue doesn't want
to position their equipment or to convert freight over in a particular market to one of our partner
carriers. This action of conversion will allow Werner Blue to attain more business in the same
area and Werner Enterprises is still fulfilling their commitment to the customer.
Porter’s Five Forces Industry Analysis: External – Industry
Environment
Five Forces Matrix Analysis
When conducting a course to start a company must understand what is affecting their
business. Porter's five forces that will affect a business and that a company must determine if
there are any barriers of ent1y. Are there any substitutes that can an influence of cost structures
or loss of business? Determine the bargaining power of suppliers and buyers. How do they rank
high, medium, or low within the marketplace? What is the competition like? In addition, how
do they differ and could a competitive advantage be created?
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Barriers to Entry. There are no barriers to enter into the 3pl market or the trucking industry.
The issue is having the connections to get in the door with customers. A couple of years ago the
market was saturated with pure upstart 3PL companies but they could not rival the CH
Robinsons, Allen Lund, or NYK. Werner brokerage was created to provide a solution of Werner
Enterprises freight that they could not haul or have enough trucks to fulfill the customer
demands.
Werner Brokerage now is the top I 00 3PL and is rivaling the pure brokerage companies.
More asset-based companies are trying to build small 3pl companies so that they can capitalize
on the freight missed within their company. The success of the companies may or may not last
for a length of time; however, there is no serious hurdle to get in to the brokerage market
Substitutes. Brokerage substitute is other 3pl companies, asset based, or intermodal and that
depends on the particular marker where rail is an option. For Werner Enterprises they cover all
modes of transport under the VAS and Blue. Vas is made up of brokerage, LTL to provide less
than truckload, intermodal and international. With the presence of all these products, Werner
Enterprises can be able to handle all of the customer needs as they come available. The viable
substitution for Werner would be using another carrier, 3pl, or intermodal to haul the freight of
the customer. Service level and price is usually the reasons why a customer would substitute one
carrier for another.
Bargaining power of Suppliers. The bargaining power is a pendulum in the brokerage
industry. Brokers are in the middle between carriers and suppliers. Brokerage position is to
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recognize who has the balance of power and then adjust rates accordingly. The power is based on
market constraint in respect to capacity or freight, fuel cost, season, or inclement weather. Today
the market is volatile and most shippers have secured equipment form asset based companies
through bids and commitments to be able to handle the demand from their customers. When
capacity is plentiful and freight is nonexistent then the shipper has the power. Shippers may use
to bid packages to lock in rates for a specific period. When the market was going haywire
because of the market crash of 2008, shippers forces many carriers into two-year contracts with
unfavorable rates to secure equipment and carriers to secure loads.
Bargaining power of Buyers. The carrier’s power is available when the capacity in
markets is low and freight is at highest peak. Carriers tend to determine the rates to move
freight. Brokers are the intermediaries and must be able to predict when the market shift and play
to its strengths. Some markets have the same cycle year over year and those times are the easiest
to predict. Either the shipper or the carrier could be uses interchangeably as one or the other.
Brokers could be the supplier to one and the buyer from the other. However, for the broker to
have the power they have to be in the driver seat of the freight. Werner has to improve their
bargaining position. CH Robinson maintains a competitive edge because they have tripled the
amount of partner carriers with in their network, which allows Robinson to maintain power with
both the shipper and partner carriers.
Competitive Rivalry. The competition in the brokerage arena is vast; however, few players that
are making a significant difference on a whole. Some of these companies will use each other to
handle business. Werner Enterprises for example will use CH Robinson to backhaul their asset
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trucks to an area that they have a need to move their customer freight Customers are looking for
p1ice and service and whichever can provide both will obtain the business. The top three
companies that rival Werner brokerage is CH Robinson, Coyote Logistics, and a group of
smaller niche 3pl companies that have key business contacts and loyalty. CH Robinson has 137
offices across the country and for a non-asset based company they move billions dollar a year
worth of freight. Over the past couple of years, they have grown but not in the double-digit
figures, they have been experiencing in the first decade. CH Robinson has been experiencing
the fluctuations in the industry and trying to create relationships that are more fluid with carriers.
Coyote logistics have been existence for the last six years but they are no rookie when it
comes to moving freight within the 3pl market. The owner of the company created American
Backhaulers who CH Robinson about for their systems. Both companies have an advantage over
Werner brokerage when it comes to their systems the smaller companies individually are not a
threat built when each of them are in places where the Werner cannot enter a can pose a problem
not only for Werner but the other larger brokerage companies.
Werner brokerage lacks a viable system that will allow par1ner carriers to lock up freight
that they see through the computer system, post equipment on their site and run matches to see
how they can lick up several loads within their network. The advantage Werner has over the
competition mentioned is that they are asset based and have more doors that they have access.
Werner has a different business model and does not fall in the pitfall as other asset brokerage
companies by trying to model after CH Robinson.
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Implications of Five Forces
Threats. Werner threats are the lack of technological advances with their system and
losing business because the inability to provide accurate data in a timely manner from trying to
bid freight to tracking and tracing shipments in an efficient manner. . The lack viable payment
options for partner carriers going out of business or going direct to the customer.
Opportunities. The biggest opportunity for Werner Brokerage is that they have the
ability to convert freight over from their blue side and use their rates in certain markets. What
happens that the Brokerage assumes the price that the Blue had quoted and hires a partner carrier
on the lane without having to negotiate a rate with the customer? Another opportunity is to
absorb freight that a competitor did not perform an adequate serve level desired for the customer
Detailed Value Chain Analysis: Internal Environment
Customized Value Chain of Activities in Table Form
According to Porter, a company's value are placed in these 9 elements: general
administration, human resources, R&D, procurement, inbound logistics, operations, outbound
logistics, sales and marketing, and service (Porter & Millar, 1985). A company must understand
what they have so they can make the necessary determinates to be able to plan for changes. In
table 1 below Werner Brokerage is strong in a lot of areas compared to that of CH Robinson.
R&D for Werner because they do not want to put the necessary money it would need to update it
computer system, where CH Robinson improving their system is a top priority. Small Third
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Party Logistic (3PL) companies do not have the capital to take on a sophisticated system that will
need upgrades periodically.
Werner HR department is a top rated because they put value within their people. Training
and development is a priority for Werner and believe that their employees are the greatest assets
to their company. The average broker that has been with Werner is 5 years and CH Robinson the
average broker stays 2 years before they move on. A noticeable difference between the two
brokerage companies is of the inbound and out bound logistics. The models are different in
nature.
Brokerage strategy for Werner is that all freight handled by a region is inbound to that
region and CH Robinsons is the vey opposite. For example, the Atlanta region is responsible for
freight coming all over the country into NC, SC, AL, FL, and GA and intra those reason.
Conversely, the Atlanta branch for CH Robinson is responsible for all the freight out of their
region to all over the country. Werner brokerage is the only 3PL with that model. This model has
helped Werner Brokerage to be a top third party provider for six years in a row, and the
department has to been a profit maker for Werner in 2010 and 2011.
Table 1
Value Chain Analysis
Business Process Werner Brokerage CH Robinson Small 3PL
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Management Strong Strong Weak
R&D Weak Strong Weak
HR Strong Weak Weak
Procurement Strong Strong Weak Inbound Logistics Strong Weak Weak
Operations Strong Strong Medium
Outbound Logistics Weak Strong Medium
Sales Weak Strong Weak
Service Strong Medium Medium
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Company Skills / Capabilities
Werner Brokerage has the talent to take the next level. The management all has twelve
plus years in brokering freight. They all came from CH Robinson, NYK, and various other
trucking companies and brokerage firms. Most of the brokers all came from other brokerage
firms as well. The talent and the skills sets are readily available. Werner is capable of moving
growing and becoming a top ten player if they increase their sales force who understands the
nature of brokering. Table I shows the weakness in sales staff brokering freight.
The Sales team spends more time selling asset freight. Service is excellent for Werner
because the bonus structure that is paid to the brokers is very lucrative. To make more money
they have to be aggressive and wanting to take on more projects to be able to increase their pay.
Operations is great for Werner because each step that a traditional broker because of
segmentation within the company. In Werner, the brokers book and negotiate freight only. CSA
track and trace freight and Customer development team schedule's loads, solicit freight from
customers, and handle problems when it arises at the customer.
Implications of Competitive Analysis (5 points)
After the determination of what the values are the strengths, Weakness, skills, and
capabilities are assed. Werner as any other companies can benefit greatly by the program
created. The strengths, weakness, and skills explained in further detailed below of Werner
competitive flow.
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Strengths. Werner strengths are found in service, and the ability to understand the
market changes. The management team is one of the best within the industry. The Inbound
model to the regions of the country and the diversification of the various broker hats that CH
Robinson. The retention rate with Werner Brokers and a healthy bonus plan that is paid out
monthly when profit is reached is superior compared to that of its competitors.
Weaknesses. Technological advances in Werner's computer system and the ability to
hire carriers with in the first year of their existence. Manual in putting of critical information so
the Customer development can report to the customer. Another weakness is research and
development of new systems that will improve service. Another weakness is the sales staff being
knowledgeable of the brokerage industry.
Skills. Werner brokerage managers are the top within their industry. The ability to
understand all of cycle changes within the market place. The diversification of positions allows
for each position within Werner Brokerage to develop and honed in on a skill. Another skill is
the art of negotiating.
Capabilities. Werner Brokerage is capable of just going about to any customer because
of the sales people going in and soliciting freight for blue. It's the inside reps who may ask if
brokerage is an option, Werner has the ability to bring on more carrier bur they will have relax
some requirements.
Detailed SWOT Analysis
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SWOT Factor Matrix
SO Strategies. Management being able to understand the markets and negotiate with
carries that they can be able to leverage cost, take on more freight at a lower price point to
customers, and offer to their partner carries. Customers are looking for ways to ship their
products at a cost that will not raise their prices to the customers. However, they want to be able,
have service that will meet their specifications. Werner Brokerage managers work with carriers
by offering bids and finding the right carries who is ready to fulfill a niche.
ST Strategies. Werner is a debt free company who can research and purchases a
computer system that will rival the competition. 3Pl they can utilize the Blue side of its
company to haul freight. Fuel cost is another threat that Werner can capitalize on by providing
the customer with higher fuel surcharge cost structure while keep in what they pay the partner
carrier fuel low.
WO Strategies. Werner outbound weakness is not a weakness because each region
capitalizes on moving fright everywhere. The opportunity is developing more round trip freight
between the offices and using Werner Blue to and Werner Dedicated to fill in gaps where
needed. Werner brokerage uses its relationships with partner carrier to take on additional
opportunities trying to take care of niche lanes at a lower premium to obtain the business from
customers.
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WT Strategies. Werner can invest on a new system to minimize the weakness they may
have from not have an updated system and the revamp the process of approving carriers so that
they can bring on more partner carries to haul the freight. The rigorous process of approving
carrier’s aides the ability weeding out problematic carriers; however, the process will allow those
carries to haul for other companies.
SCOT Factor Matrix
SO Strategies. The negotiating skills of management will allow the emergence of new
freight in the business units. The diversity of positions will allow the customer reps to create
repo1t with the customers who are responsible for divvying out the freight. The trucking industry
thrives on relationships the more the rep becomes familiar with the customer then the more the
customer is apt to give opportunities.
ST Strategies. The negotiating skills of the brokers could find ways to leverage the fuel
cost by lowering the line haul cost to make up for inverse of the higher fuel. For example:
Line haul from Atlanta to Charlotte is $500 and $60 equals $560 for fuel is what we pay
a carrier and our cost to the customer is $550 plus$80 equals $630 Werner Brokerage makes $80
profit. Well fuel raise $20 the following week brokerage managers or employees to still make
their $80 profit they will tell the carrier line haul is now $480 and fuel is $80 equaling $560.
Werner still makes their $80 profit margin.
CO Strategies. Werner Brokerage can use its name, solicit more freight from Werner
Blue, and use its partner network to fill in the niches where Werner Blue does not want to go.
Brokerage has the capability of bidding fright and wining more lanes for its business unit.
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CT Strategies. Werner brokerage has the capability of creating strategic pa1tnerships
with carriers so that they can be able to work around the high fuel cost. Negotiating fuel
surcharge with customers and the Threats of entrants in the market will not be a problem because
of the capability of turning Werner Blue freight into Werner brokerage. This will leverage and
streamline growth in revenue and profits for Werner.
Key Success Factor Matrix Analysis
The keys to success of success of a Werner brokerage are the management team, the
brokers, the sales force and the system. Werner Brokerage highest factor is the management
team. Each manager has been thought the trenches. They understand the trends the changes in
the market and make wise decision when it comes to creating value for their business units.
The sales force has the ability to sell brokerage; however, sales do not understand how the
brokerage department works w1ithing Werner. Sales have to go through the main office if they
have an opportunity for brokerage instead of going to the office themselves. The Sales force has
to be a little more aggressive in asking customers if their freight earn be utilize by the brokerage
department to give the customer options.
The other factor is the brokers. They have to establish the relationships with the partner
carriers. The brokers have to be aggressive and make sure that they understand the market
fluctuations so the brokers will not over pay to the carriers and can negotiate more when truck
are loose in a certain market.
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Implications of Analysis
The implications in either of this analysis are that changes can occur anytime. The market
5 years from now might be that everything is plentiful and It is just enough freight for everyone
in the market place. The analysis helps companies to pinpoint where they need to maintain their
focus the most. One would say keep building on your strengths focus on a weakness and turn it
into strengths. The SWOT is a very good indicator of where a company is in relation to the
competition the SCOT helps organizing the skills and capabilities to increase opportunities and
thwart threats. The key factors helps in pulling out the areas where a company can generally
classify where they know what areas are vital to keep and add talent to fit within the overall
success of the company.
Analyzing the Company Strategy Type -Part II
Strategy Type
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An effective strategy aligns itself with the mission and the vision of the company.
Management must understand the complexity and intricate details of the company. Moreover,
how is Werner going to capture customers? For Werner Brokerage customer relationship strategy
is the strategy that should be implemented. The customers and carriers in the brokerage arena
are customers. Relationships are very important to a broker. On the customer side creating a
value or rapport with those who in charge of awarding business is advantageous. Most people
rather work with someone who they are familiar. The goal is to find common ground with
customer and provide them with a service that is the best.
Carriers are more apt to work with you and become reasonable when it they value the
relationship, they will tend to bend over backwards for the broker and the broker in turn will
help them out especially when situations are not looking favorable. The key in relationship
strategy is Communication, commitment, and compromise what I call the three C's of a healthy
relationship.
Communication is the door to build trust and honesty within the relationship. All parties
involved are lining up into on accord and commitments are established. Carriers, customers, and
brokers start negotiating to be able to secure business and compromise made to get the
commitments they want to reach. All three C's are working simultaneously this point; however
communication is the key.
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Supporting Argument
Werner Brokerage should pursue the customer relationship strategy. The one area they
are missing the boat is setting up the small carriers who is willing to start with a company
especially when there is not enough business to see how they operate. Werner Brokerage
managers currently do not have a direct relationship with customers as they do with carriers.
Each groups Is equally important for Werner brokerage; customers provide the freight and the
carriers provide the equipment. For Werner brokerage, the current strategy needs to tweaking to
allow sales and brokerage managers to work closely together to sustain business or create new
business.
Analyzing the Company Strategy Moves
Relevant Strategy Moves
A Werner enterprise applies the judo strategy when it comes to doing business with their
customers. I would like to say more like a full court press. Werner has many weapons from
assets, dedicated, brokerage, intermodal, LTL, TMS and one-way. When sales go into a
customer they listen to the customer needs and then they will develop a plan based on their
needs. The sales team takes time creating and developing relationships with the customer. When
the customer sees that Werner is just not a trucking company but one shop stop for all of their
logistical needs they become more intrigued. Werner is a debt free company and a $15 billion
entity and they can choose who they want to business with.
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Once a customer gives freight opportunity it is sent to implementation with in Werner
and then the freight funnels to one of its five verticals EASE, Manufacturing and Distribution,
Retail, Food and Beverage, and Customer Development. Werner uses these verticals to separate
the customers based on their market segmentation. These groups are responsible of where to
funnel the freight within the organization to assets, brokerage, intermodal, international, or
dedicated. The strategy works tor Werner, However there are times when the sales force could
bypass the verticals and go straight to brokerage to obtain faster turnaround to customers about
freight that need to be rated on the spot.
Supporting Argument
Werner over the last three years has sustained double digit growth. Werner brokerage
may not have reached its goals; however, they still experiences an 18% revenue growth and 14%
profit growth in 2011. HD, Bass Pro, Navistar, Chevron, Ryder - DR. Pepper, PepsiCo rely on
Werner to handle their logistics in certain segments of their business and Werner is using all of
their product lines within these companies to sustain their business. Werner strategy has given
them a market differentiation when it comes to their competitors. Customer relationships play a
major role for the success of the company.
Alignment and Goals Analysis
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Alignment Checklist and Unit Goals
When goals are developed Werner involves its people to come up with ideas. This act is
important because the employees feel that they are valued and this helps with the buying of
the goals. Werner is a people focus company and realizes that their best assets are their
people. Each group has different incentives to compensate employees. Money is not the
top motive sometimes but having sense of value when working and recognition. Werner
spends time to make sure training is available, promotes from within, have a relief fund for
employees who experience a life altering hardship.
The company will even open a non- interest fee loan and tuition reimbursement. The
culture of the company is conservative, but they allow their people to be innovative and creative
to move to help grow the company and take care of the customers. Many of the
employees say that Werner is a great company to work for and even though they can go
somewhere else and receive more money; however, there are some intrinsic values they do
not want to give up.
Supporting Argument
The Werner brokerage incentives for its employees are the best in the brokerage industry.
The employees receive a salary that is better than the industry standard and they receive a
monthly bonus when they bring a certain level of profit. One branch was struggling to hold
margins, freight was being missed, and the confidence in the office was diminished. The
company hires a new manager. The new manager had inputted a new structure and strategy and
in a year, the office went from 3% margins in2010 to averaging 11.6% margins in2011. The
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goal of the manager is to make sure each of employees stay involved in decision making for the
office, gave accountability, and creating value in the office.
Action Plan Analysis
Relevant Action Plan
Werner sets goals for the company and then each business unit within the organization
formulates their goals to match up with the goals of the organization. Each department with in
the business units sets goals to line up with the goal of the department. Top management must
make sure that the goals are attainable, is the goals compatible with the strategy of the
corporation, will it receive the support, and will the plan be complete to meet the strategy of the
corporation
How to measure performance needs to be developed and agreed upon. In Werner every
department have their employees based on different criteria. Werner is segmented so
performance measures have to differ from one department to the other; however, employees need
a clear understanding on what metric are being used to evaluate them. Actions steps would need
to be formulated asking if the plan can be broken down into smaller pieces and assigned
someone to make sure the steps are taken care of and then added back to make sure every steep
is in alignment.
Management must determine the resources needed to reach the new plan. Will additional
training be needed? Does the equipment that have is it adequate to handle what is being asked? Is
the building has enough space for the new employees? Should we get a larger space to plan for
growth? Do we have the talent to handle new projects? Alternatively, do we need to backfill a
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position because we are moving some into a new role? Management must identify interlocks
between departments. Will Human Resources be involved in the hiring and filing process?
Supporting Argument
Werner brokerage meets once a year to create a strategy for the next year. Each office
lines up their office to meet the goals. Every office is different but the key resource is its people.
The brokerage department wants to tap in to the refrigerated segment. The issue is that only 2%
of the brokers are familiar with buying and selling refrigerated freight (TCU). The number of
carries who haul TCU has diminished. Each office is out looking for a broker who has
experience (TCU) broker. Goals and plans are useful when the employees are involved in the
process and everyone has a clear understanding of what is going on.
Fitness Landscape Analysis
Description of Fitness Landscape and Analysis
The Brokerage segment of the Logistics field has went through many changes over the
last 20 years. The creation of optimization system to help in determining strategies in pricing
and being able to help partner carriers to move win the various networks. According to (Silver,
2003) Freight brokers are small part of the overall logistics industry and since the inception of
freight brokers they have used the services of trucking companies and railroads that move
freight, and competed with them.
“Fitness could be described as two dimensions; survival fitness and reproductive fitness.
Survival fitness is the ability to adapt and exist. Reproductive fitness is to endure and produce
similar systems” (McCarthy, 2004). Since 2008 the whole transportation industry has taking a
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blow due of rising fuel cost, credit, loss of drivers, new regulatory reform. In the brokerage and
asset based segments it has been the survival of the fittest. Werner Enterprises has done that they
have adapted to the changing climate and continue to exist because of the VAS arm created
which house brokerage, LTL, intermodal, and international. Werner Enterprises is more of a
logistics company even though they are considered a trucking company.
The weakness of Werner and where there is potential is their homegrown system
SMART. In the fitness landscape of the brokerage segment CH Robinson is the largest 3PL
provider in the industry and they have spent millions into their system to be able to make the
decision to stay a dominate player. Werner can follow suite investing in their systems, and make
a clear separation and be a dominant player in the asset based and the 3PL segments.
Dominant discourse theory is the “idea of a person not talking in the terms of the
visions, missions, strategic plans, targets, policy, rules, performance, efficiency, and
improvement they will not be able to sustain their membership of the more powerful grouping in
organizations today” (Stacey, 2011). Within Werner this fits whether you are in the field or the
home office being able to talk in the terms in the Stacy description is going to keep you respected
in the company. In one thought the dominant discourse theory can create yes men instead of out
of the box thinkers. That may be true; however the individual must be creative to excite change
in the context of the companies’ culture. Many time organizations go outside to bring in new
blood to be able to bring in a freshness to the organization to keep it competitive not complacent.
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Implications of Analysis (10 points)
Werner Enterprises is a great company that has a group of talented individuals in the
company. I believe that Werner Brokerage and the rest of the company have the people in place
from to achieve the goals of the company. From a systems perspective the Werner needs to
invest in a system that will provide them more information that will help them optimize their
process to serve their clients.
The transportation industry is going through changes and Werner like any other
company has to make decision that will help it whether through the storms. Werner has the
financial status, the equipment, and the diverse portfolio to be a dominant player in both the asset
based and 3PL segments in the Industry.
Boid Analysis
“Boid Analysis” Systems Description and Analysis
In the early years of brokerage the rules was very simple get what you can no matter how
you do it. To the customers it was representative of legal pirates. Over the years, the brokerage
companies who wanted to create and maintain business had to differentiate themselves form that
stigmata and the Third Party Logistics term was formed. Companies like CH Robinson, Allen
Lund, NYK logistics, and Coyote Logistics all have found ways to penetrate customers to
leverage pricing, and hire the carriers needed to haul the freight.
When these 3Pl dominate the market in their segment, they began to form the rules of the
game. CH Robinson is a machine that the majority of upstart brokerage companies try to use
their model to fit their business needs. The industry still relies on the face-to-face interaction,
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relationship, and that handshake. There is also good pricing and service that is taken out as well.
There is no loyalty, as it perceived to be in the industry. Most customers will turn which way the
wind blow, they are always having their eyes and ears open for the lowest paid truck driver.
The industry itself can be classified with some rules of the Boid Analysis: avoidance,
alignment, and attraction. There are attributes in the brokerage segment that fit within the
framework of these rules. There are not many 3PL willing to avoid any type of opportunity.
The customers may avoid brokerage because of the use of different carriers of hauling their
freight. The asset-based companies provide a better sense of security to most customers because
of the equipment and reputation. Most customers are looking for carriers who can provide drop
equipment at either end of the particular shipping lanes. Brokerage avoids customers who
require drops most of the time because the carriers who they use are trying to get back home or
into markets where they have to return to move freight for their customers.
The seasonality of the how the freight moves across the country is where you can see
alignment within the brokerage arena. The last couple of years have brought about some
difficulties because of the cost of fuel, loss of drives, and new regulations within the industry.
The use of load boards and transportation reports try to assist by giving industry updates helps to
provide consistency in pricing. The attraction to the brokerage arena is the money to be made.
Many of the asset-based companies are creating brokerage departments to handle the freight
from their customers that they cannot handle because of capacity. The other attraction is the fact
an individual can be his or her own boss.
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Implications of Analysis (7 points)
The Boid analysis is good for management or companies to understand why or why not
they want to enter into a segment. Werner brokerage for example could use the analysis to see
which customers they want to avoid based on shipping parameters, credit, and value of freight.
Difficulty and special hauling they may avoid altogether because of the type of equipment the
brokerage partner carriers may not have access to.
The attraction to the industry for Werner is because of the amount of freight that was
turned down by the assets; Werner believed that creating a brokerage department that they could
capitalize on missed opportunities. Werner was able to align themselves with their customers by
providing other product lines to customers. Werner is looking to become a partner with their
customers and to be the mainstay of shipping the customer’s products.
Industry Evolution Modeling
Industry Evolution Modeling Description and Analysis
The Brokerage industry is still in the stages of the first order thinking. The development
into cybernetic systems and computer models has not been accessed into that arena. Few
companies within the brokerage industry that may have reached the second order level of
thinking however very few have. According to (Stacey, 2003), first order thinking systems is
concerned with intervening in the system to define clear goals, identify problems, and propose
rational solutions. “The second order thinking according is built on understanding the that
human being determine the world they experience and requires that we reflect upon how we
operate as perceiving and knowing observers” (Stacey, 2003).
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With this in mind the brokerage industry managers and researches has to be cognizant of
their own framework and understanding of what they know about the industry. Werner has
moved has not the second order thinking in its planning. People are their greatest asset and they
know that the environment needs to be that of where the employees add value with their hard
work, dedication, and ideas to keep the machine moving. The people in Werner still want a clear
direction for goals, problem identification and solution, and observing others within the industry.
Within the second order thinking there are levels that Bateson described that employees
or organization s go through. Level 1 is the process where learning and mental modes stay the
same. Level 2 because those learning and mental modes to change as time progress, and level 3
learning and mental modes are changed by some spiritual or unexplained causes. The Second
order thinking. Most companies within the brokerage arena are using hard system think methods
because of the involvement of people and the observation of what is going on in the industry.
The complexities within the industry make it difficult to computerize a system that will work.
Every company is different and customers can change their minds frequently on they choose to
use to haul their freight.
Brokerage thrives off communication and the industry is still about face-to-face
relationship, even though the technology that is available. Werner itself enjoys the fruits from the
hard system thing because of the amount of freight it can move through its pipeline and being
allowed to take on more to reach the goals the company has set. There are situations where
second order thinking can operate inside of a hard system framework. This is possible when
small projects are available or focused groups are needed.
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Implications of Analysis (10 points)
The implication of the first order thinking is that a company or individual can get stuck in
a recycling mode and will not try to think out of the box. Just because goals are set does not
mean that the way to reach the goals have to be followed by a certain set a rules and guidelines.
“The second order thinking is that doesn’t take into account the participating observer, but
eliminating it through the device of redrawing boundaries and changing level of descriptions”
(Stacey, 2003). There are times that first order thinking companies can incorporate the second
order thinking when it comes to special projects or handling a particular issue that has to some
new solution. The world is changing and old process and thoughts will not work on the new
issues of today,
The brokerage industry has changed over the last 10 years. More asset based companies
are beginning to use their own in house 3PLS, a majority of smaller mom and pop companies
have joined together, sold their business, or went out of business. Most companies do not want
to have anything to do with brokers for various of reasons; however, the most voiced reason is
that customers are looking drop trailer equipment and since 3pl do not have any equipment
themselves its making them more vulnerable to the lack of business.
Werner has capitalized on this by having carries sign a trailer interchange agreement, which will
allow carriers to use Werner trailers. This action helps Werner to provide a service to carriers
who are looking for freight into certain areas. The customer will still be satisfied because of the
system that Werner has in place. The evolution of the industry is that asset based companies will
be able to provide more services to the customers to get the freight moving.
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Life Cycle Assessment (20 points) due in Week 7
LCA Modeling Description and Analysis (10 points)
The 3PL arena has it time over the last ten years. Before 2008 when the market melted
down 3PL companies were flourishing. Werner brokerage has been around since 2006, and
compared to the rest of the brokerage industry it survived through new process and customer
demands. In 2009, the pendulum of power switched from the carriers to the customers. Most
customers were price driven in 2009 which led to a lot of carriers hauling freight while make
minimal to no profits.
The 3PL industry the life cycle is continuous. The products need to move from point A
to Point B by an asset-based carrier and it will move through the company itself or a broker.
Many asset-based companies to input into their organizations to capture opportunities are
exploring the 3PL segment. The customers are not trying to utilize non-asset based carriers so
that assurance of their freight will pick up and deliver.
Fuel and government regulation are two outside forces that is impacting the
transportation industry. Brokers have to make sure that the carriers that they are using are in
compliance to the new government regulations. If the brokerage companies fail to perform their
due diligence on the carriers, and they have the possibility of being held liable for any issues that
occur. Fuel prices have been higher over the last 3 years compared to that of the 10 prior years.
Many carries have had to change the way to run their business. Smaller companies keep most of
their trucks in a defined region.
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Implications of Analysis
The transportation industry does not have a life cycle compared to the products being
shipped. The transportation industry will continue to thrive, as products are needed to move from
one place to another. The life cycle is a great indictor within majority of the industry and
management could use to access when to make decision when it comes to price, introducing a
new development with and existing product, or phase out and introduce another product.
The implication in the transportation industry when it comes to brokerage or asset based there is
no creation or ending with this industry. The commodities shipped all have a life cycle it goes
through as the tractors and trailers used within the transportation industry.
Compliance to Innovation Analysis
Compliance to Innovation Description and Analysis
The possibilities are open in the Third Party logistics segment. Transportation programs
are being created now to assist companies in tracking methods, freight optimization, and lane and
rate analysis. Many of the companies within the industry have undergone retrofitting their
drivers with QUALCOMM’s. This action has led to many companies leaning towards going
with more asset-based providers than the 3PL providers do. The 3PL have a difficult time
implanting new technology due to cost and infrastructure. C.H. Robinson has pumped millions
of dollars into their system to take care of issues that can affect their bottom line.
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Werner has been looking at ways to create new ideas to streamline process, make more
money with existing customers. Werner Brokerage management has asked for upgrades on the in
house system so that they can better leverage rates. Upper management is making decisions and
goals, and needed in the consulting arcana with some schools. Werner could potentially be a
pioneer with Radio Frequency Identification (RFID) collaborating with some of the industry
leaders of customers, government, and other carriers. The use of RFID potentially change the
industry and streamline process, have better control on location and communication would
become better and seamless.
Implications of Analysis
Innovation is an idea that will keep companies as the leaders within their markets. There
are companies who are better at accessing information; however do they know what they are
handling. Innovation is costly, because of the amount of infrastructure that has to implement and
training hours. Many of the companies might make some changes where cost is no concern of
theirs, and others may need to innovate and invest before they start losing revenues and profit
sharing.
Sustainable Value Framework Analysis
Detailed Analysis of All Four Quadrants
Sustainability is a multifaceted challenge throughout any company. Opportunities and
risks are changing rapidly that management wants to learn how to ride the waves or be ahead of
those changes. Companies have to create value within their new framework and have concerns
about the environment around them. Management has to be concerned with creating stakeholder
value and wealth while revolutionizing its business thinking.
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Werner vision “To be recognized as global logistics partner providing customized supply
chain solutions that manage cost, improve visibility and pursue continuous improvement
throughout our customers’ network” (Werner, 2011). Werner mission “To deliver value to our
customers, business partners and shareholders through leading edge global supply chain
solutions that exceed expectations and promote safety while we remain customer focused and
asset-backed” (Werner, 2011). Werner goal to meet its vision and mission is focusing on the
value added services (VAS) division to leading the way to improve growth and profitability
while keeping the asset side operating efficiently and maintain its business.
The framework for Werner to create sustainable business using the four quadrants there
has to be an understanding of the internal and external drivers for today and tomorrow. The
lower left Quadrant of the Sustainable Value framework chart is internal for today. Werner
strategy is to have the sales staff to engage new and existing customers to capture more freight
opportunities for rail, LTL, international, and primarily brokerage. Werner needs to improve the
quality of the customer service teams who interfaces with the customers daily, replace
complacent brokers with aggressive brokers who will take risk to move freight, and improve
rates that will capture business but not run the risk of losing it to another provider. The payoff
will be higher revenues, repeatable business, and leveraged margins.
The next quadrant is the external for today is to increase Werner needs to be more
collaborative with its stakeholders to increase the transparency of its goals. Werner customers
have to understand that Werner has the ability to take care of every transportation need available.
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The more transparent Werner can be with its stakeholders the better the reputation and validity of
services can improve. The third quadrant is the Internal for tomorrow. Werner strategy for
tomorrow is to implement a better software system. The current system does not allow brokers to
match up lanes to keep continuous flow equipment within the lanes. the system does not allow
for integration of industry tools that will help brokers and management to provide rates faster.
Investing in a more intelligent system will allow for Werner managers and employees to make
better decisions.
The last quadrant is external for tomorrow. Werner management can plan by having an
open forum with its stakeholder to gather ideas of how to meet the goals and map out a desired
projector to obtain those future goals. The result will create sustainable growth path. The
managing for one stage to the other would be a team of upper management across all divisions,
with senior employees and a valued outside stakeholder. Werner as a great product; however,
there is much room for improvement. The volatility of the transportation industry there needs to
be strategies in place for Werner to stay ahead of the curve and become more of an industry
leader.
Argument in Support of Conclusions
Werner brokerage has had sustainable growth in the last couple of years. They are in
the top 100-3PL providers for five years in a row. Werner can continue on their path and one of
the advantages they have over many of their competition is that the Brokerage division is asset
backed and because of those assets, more opportunity is available. The 8-brokerage managers
have a combined average of 15 years’ experience within the brokerage arena. Werner
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management is constantly exploring ways to position for success and to be a viable 3PL
provider.
Implications of Analysis
The implication s for Werner is that eventually they will need to understand that their
other companies who are looking to grow and add talent. In an interview with recruiters, former
employees, and current employees, Werner is as great company to work for; however, they will
have to start paying valued employees. Werner will have to recruit employees who have the
intangible skills needed to take them into the future and to meet the planned goals.
Conclusions
The brokerage arena is saturated and the companies that have the right strategy are able
to survive the various cycles within in the supply chain. Werner enterprises have the mechanism
to achieve the desired growth and maintain profitability. Werner management’s goals are to
become a premier logistic provider and they have obtained that status. Maintaining and building
upon is achievable if they take heed to some of the recommendations that have been presented
within the paper.
Sales need to engage more with the customers and offer more of the product lines other
than assets. The Inside sales team and CSM need more industry training and understand the
importance of engaging the customers freight, and replacing employees all over the VAS who
are complacent and non-aggressive. The brokerage management team needs to be allowed to
bring in customers or go on customer visits with the sales team. Werner again has a viable
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model for growth with a little tweaking Werner could move within the top 5 of the 3PL
providers.
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