28-year-old lesson relearned...
Robert Wayson
Chief Operating Officer / Vice President of Operations / General Manager / Director of Project Management (PMO) / Director of Transportation / Supply Chain Consultant / Fractional
"Those who cannot remember the past, are condemned to repeat it..."
The discussions abound on Yellow's closure this past weekend. Today is the first day for current carrier leadership education on the topic that the past yields a number of lessons, that unlearned, may bode ill for the future.
Though 28 years in the rearview mirror, the following is the fate of an earlier carrier failing to meet the changing needs of the logistics industry and being forced to rapidly transform versus evolving over time.
After 1991, despite branching out, the company’s profits dropped to $1.6 million from the previous year’s $2.4 million. The company transformed from a national carrier to an inter-regional carrier in the next couple of years, which led to substantial losses.
Due to new competitors in the market, Carolina Freight was unable to make a profit until 1994 when it was allowed to operate for three weeks while its competitors were unable to. In an attempt to reduce losses, the company tried many different routes and strategies, including the closure of breakbulk hubs in various locations.
However, the company was still bound to lose more money because of significant drops in shipments and also because of the costs that were associated with the transformation into an inter-regional carrier.?
Eventually,?company officials stated?that an increasing amount of competition, price cutting and increased overhead costs, ultimately caused the downfall of Carolina Freight.
NEX3PL Global Logistics
1 年Another bankruptcy handed over by yes, the USELESS UNIONS!
Area Logistics Manager
1 年It has always baffled my as to why they bought USF for billions yet had no plan as to how they would fold it in let alone keep any of the business.?
“a ray of positive energy”
1 年The number of times I hear we can’t do that in this industry is mind boggling. Even when they have support from OEMs and other peers. It’s a tough business to challenge historical perceptions, but it all adds up. That said Cherryville NC has never been the same and the number of Carolina trailers in fields still to this day is a reminder of the industries history.
"Dave is not an AMSOIL staff - sales person. He is a 12 year Independent AMSOIL Dealer - business owner, who is focused on helping his clients with solutions for their machines while helping to keep their costs down.
1 年And to think I went looking for a job there. Few!
Specializes in Building and Growing with the I/C model.
1 年I remember the Carolina shutdown very well. I was promoted on Saturday, and it was announced that we had been bought by ABF on Monday.