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Case Study - C.H. Robinson Logistics Strategy is seeking ways to reposition itself and its 14,000 motor-carrier fleet Source: A.T. Kearney Vision Strategic Initiatives Core Competencies Business C.H. Robinson Reposition as full service logistics provider Converting from traditional carriers to modern full service logistics provider Services include sourcing, logistics and information systems Adding more capabilities to meet needs including in truck, air, ocean, intermodal, customs clearance Contract trucking with 14,000 motor carriers on contract Extensive customer base with over 8,600 customers established in commodity trading Knowledge in commodity trading Fully integrated into food supply chain Extended “high end” experience across industries and services US$ 1.79 Bn in revenues with 1,900 employees Rapid top line growth of over 15% Offices in 38 states and 10 foreign countries A new type of internet-based logistics service provider has recently emerged TTM Source: A.T. Kearney Internet-Based Market Places Providing shippers with logistics work flow management tools such as order tracking, payment, billing, etc. CompanyStrategic Focus Role Example Web-Based Logistics Management Solutions Supply-Chain Integration Solutions Providing the architecture and integration engines which enable inter-enterprise integration and empower marketplaces Providing internet-based transportation exchange/auction services Result Clear failure as a strategy - carrierstypically refused tocooperate in their own disintermediation. Virtually all exchanges have either closed down or moved to another strategy Outcome remains unclear - question remains of whether companies can achieve enough critical mass in customer support to be viable Outcome remains unclear - critical mass also an issue in the face of challenges from SAP, Oracle, etc. Internet-based logistics services companies are offering a multitude of value-added services, e.g. automated tracking and tracing Source: Su
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