Dean Question

Double D Trucking was started by Douglas dean in 1981 and has grown from a on truck operation to a 550-tractor trailer fleet serving shippers in a five state region in the upper Midwest. Double D serves the automotive industry by providing inbound transportation to the assembly plants. It has a strategic alliance relationship with big three auto makers and is the exclusive trucking company for a number of auto suppliers.

From its inception, double d has been an innovator in the trucking industry Douglas dean is widely known for his willingness to adopt new equipment technology, computer systems and management techniques. This cutting edge strategy has resulted in customer loyalty and employee allegiance Double D promotes itself as a trucking company that has never lost a customer and never lost a day to labor disputes.

As Douglas was preparing for a strategic planning meeting with top executives, he was mulling over recent trends in the trucking industry as well as the logistics field. Dean knew double D was a profitable regional trucking company and registered high in customer satisfaction surveys. He also knew that to retain this enviable position he must continue to be innovative and provide the service customers need.

During the past two years, Double D has witnessed increased competition. Long haul trucking as come under severe competitive pressure from rail piggyback, and the long- haul truckers see regional trucking as a profitable marketplace. Expediting carriers, trucking companies that provide rush deliveries have made significant inroads into the automotive industry, where just-in-time management systems mandate minimal raw material inventories guaranteed delivered and vendor penalties for late deliveries that result in production line stoppage.

The most perplexing trend to Dean is the growing vertical integration of trucking companies into other logistical services. A number of regional trucking companies have started warehousing divisions...