C.H. Robinson Worldwide Inc.

C.H. Robinson Worldwide Inc.

Executive Summary

C.H. Robinson Worldwide, Inc. operates as a third party logistics company. It provides freight transportation services and logistics solutions to companies in various industries. The company, through its relationships with approximately 50,000 transportation companies, including motor carriers, railroads, air freight, and ocean carriers, selects and hires the appropriate transportation to manage its customers' freight needs. It also provides a range of value-added logistics services, such as supply chain analysis, freight consolidation, core carrier program management, and information reporting. In addition, the company operates fresh produce sourcing and fee-based information services businesses.

About the Company

C.H. Robinson Worldwide (CHRW) is a global provider of multimodal transportation services and logistics solutions. It also provides fresh produce sourcing and information services. The company primarily operates in the US. It is headquartered in eden Prairie, Minnesota and employs about 7,961 people. The company recorded revenues of $8,578.6 million during the financial year ended December 2008 (FY2008), an increase of 17.3% over 2007. The operating profit of the company was $571.6 million during FY2008, an increase of 12.1% over 2007. The net profit was $359.2 million in FY2008, an increase of 10.8% over 2007.

Objectives

C.H. Robinson Worldwide, Inc. intends to serve businesses in the Northwest United States (Washington, Oregon, Idaho, Montana, and Wyoming) with truck-based distribution services.

Over the first three years of operations, C.H. Robinson Worldwide, Inc. will seek to meet the following objectives:

establish bases in Seattle, Spokane, Portland, Cheyenne, Boise, and Billings

Purchase 8 18-wheeler trucks with dry van trailers

Hire 10 full-time truck drivers

Achieve strong annual revenue  based on 1.2 million miles of hauling in the third year

Mission

C.H. Robinson Worldwide, Inc. will simplify distribution of goods for Northwestern businesses, becoming their partner in operating efficiently and reliably. C.H. Robinson Worldwide, Inc. will use management of logistics, on-time, accurate deliveries from destination to destination in the Northwest, and partnerships with distribution centers and warehousing businesses to achieve its goals.

Strategic Analysis

This is all about the analyzing the strength of businesses' position and understanding the important external factors that may influence that position. The process of Strategic Analysis can be assisted by a number of tools, including:

Political/Legal factors

Government deregulation of the airline industry which permitted the landing of larger freight planes, thus reducing operating costs for C.H. Robinson Worldwide, Inc..

Deregulation of the trucking industry, which allowed C.H. Robinson Worldwide, Inc. establish a regional trucking system to lower costs further on short-haul trips. Trade deregulation in Asia Pacific, which opened new markets for C.H. Robinson Worldwide, Inc.. expanding globally became a priority for C.H. Robinson Worldwide, Inc..

Economy factors

"The growth of the express transportation and logistics industry was brought about by three main trends: the globalisaiton of business, advances in information technology (IT) and the application of new technology to generate process efficiencies, and the changing market demand for more value-added service"

Socioculture factors

"C.H. Robinson Worldwide, Inc.'s business expanded beyond national boundaries and extended their global reach to take advantage of new markets and cheaper resources, so the movement of goods created new demands for transportation and logistics ...