Company Profile - Saia LTL Freight

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Saia LTL Freight is a US third party logistics company based out of Johns Creek Georgia. Saia specializes in regional less than truckload services, with direct service coverage to 41 states and extended coverage in Alaska, Hawaii, Puerto Rico, Canada, and Mexico. More than 26,000 shipments are delivered everyday from 169 terminals across the continuous United States. Saia also offers full supply chain management services offering operational optimization, data analysis, or other supply chain improvements. Saia’s current market share sits at approximately 2.99%.

 


The US freight and logistics transportation industry is a highly competitive environment with a wide range of transportation service providers. To be a successful national transport service companies require a large number of resources including trucking equipment, operational facilities, work force, and technology. Some of Saia’s biggest competitors include Estes, Averitt, Old Dominion Freight Line, and XPO Logistics.

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Growth Analysis

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The current US and Global supply chains are strained to their limits. Analysts say that the lingering effects of COVID-19 mitigation strategies essentially reduced the production of goods and services, and the supply-chain shortages now happening are the result of struggles to return to pre-pandemic levels (Vann, 2021). 4.3 million Americans quit their jobs in August, with the dock and warehouse industry reporting a 490,000 worker shortage (Vann, 2021). With demand for consumer goods up 22% Saia is in a prime position to experience hearty growth in revenue and profit in 2021 (Goodman, 2021).  Saia has experienced steady growth in the stock market with shares averaging $223.47 at close in 2021. As well as a healthy profit and net income growth year over year. Saia's healthy growth pre-pandemic as well as in the early pandemic of 2020 allows for the opportunity to expand their fleet of trucks, trailers, and drivers. Over the road freight bills have increased on average 85% due to ...
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Risk Analysis

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 Hypothetically speaking if Saia were to increase their driver fleet and demand for trucking services increased as well Saia could potentially see profits increase $1.5 million USD. The risk analysis diagram below shows the potential profits and losses based on the decision to expand the driver fleet or not.  There is a 50% chance that their will be an increase in demand for trucking services, a 30% chance that demand stays at current levels, and a 20% chance that trucking demands will decrease. The EMV, or expected monetary value of Saia's options are listed below. EMV of increasing the driver fleet     Demand goes up: (.50)(1500000) = $750,000     Demand is steady: (.30)(900000) = $270,000     Demand goes down: (.20)(-500000) = -$100,000 EMV= 750,000 + 270,000 + -100,000  = $920,000 EMV of maintaining current fleet     Demand goes up: (.50)(-500000) = -$250,000     Demand is steady: (.30)(500000)...
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Personnel Analysis

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  The average turn over rate in 2020 for truck drivers in less-than-truckload companies was 13% (CCJ, 2021). As Saia has continued to grow over the last 5 years, so has their labor force, with 10600 employees in 2021 (TTNews, 2021). With the US supply chain under immense strain, increasing Saia's truck driver will be critical in maintaining their market share during these demanding times. However, as shown above Saia's average annual salary for truck drivers is only $79,831 (Indeed, 2021). To attract more drivers during this labor shortage as well as maintain their current fleet Saia should look at increasing truck driver salaries to better compete with other logistics companies such as Estes, Fedex, and UPS.
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