S.W.O.

T Analysis
Strengths, Weaknesses, Opportunities, Threats

Learning Community 19
Megan Alcox, Jon Ashbrook, Devin Berresford, Audrey Burris, Connor
Cavanagh, Avery Fehrenbach, Brian Frey, Susan Heath, Brian Hollis, Ishaan
Jotsinghani, Ryan Judge, Sydney Klein, Logan Nickell, Mark Rimkevicius, and
Hudson Whiting
 TQL S.W.O.T. 2

Table of Contents
Introduction 2

Strengths

Cutting-Edge Training Programs 3

Benefits 4
Social Media 5
Culture and Operations 6

Weaknesses

Public Image 7
Limited Geographic Reach 8

Opportunities

Penalization 9
International Growth 10
Technological Improvements 12

Threats

Up-and-Coming Companies 13
Global Competition 15
Delays 16
Competitor Technology 19

Recommendations 21

Appendix 23

Bibliography 25
 TQL S.W.O.T. 3

Introduction
Total Quality Logistics is a private, third-party firm that was founded in 1997 by Ken

Oakes in Cincinnati, Ohio. Since then, TQL has become the second-largest freight brokerage

firm in North America. With more than fifty-nine establishments in the United States, they

employ 4,200 people and are growing more and more every day (Figure A.2 and A.3).

TQLs strengths include their unique twenty-two week long training program that teaches

new employees the skills needed to be successful as a stockbroker in their company. TQL also

offers countless benefits to their employees including uncapped commission, special events

hosted by the company, a 24/7 gym, and many more. Their vast social media base is an efficient

way to stay connected with their customers and employees, and their outstanding and unique

culture is undoubtedly one of their greatest strengths.

Like any up-and-coming company, TQL does have weaknesses. Their company is not

very well-known in the public eye, they have a limited geographic reach because of not having

many establishments in the Western United States, their business practices could use major

improvements in efficiency, and drivers that receive bad reviews reflect negatively on TQL.

Opportunities that could improve TQL include a penalization system for late drivers,

international growth to greatly expand business, resource ownership to spread the company name

and lower costs, and technological improvements to compete with other stock brokerage firms as

well as improve efficiency.

There are multiple threats that could be potential concerns to TQL. Companies such as

Uber are beginning to enter the stock brokerage field, most competitors are global, weather

conditions can cause delays, and some competing companies are more technologically advanced.

Strengths
 TQL S.W.O.T. 4

Cutting-Edge Training Programs

Total Quality Logistics strives to give all potential candidates the opportunities to grow

within the business. The company prides itself on their ability to hire from multiple backgrounds

and environments. They currently work with colleges and universities across the United States,

like the University of Cincinnati, to recruit top graduates for their programs. The company pulls

from different majors and minors but also allows those with pure work experience on board. In

the first five months, employees are trained under existing sales representatives to learn the

basics of the company. The new employees start with no clients and must work hard to develop a

base for themselves. This method allows TQL to separate themselves from other companies in

the field; the training they require is unique and shows new employees exactly what they are

getting into.

TQL starts off their employees with a flat salary of $35,000. However, this does not

include the employees ability to earn commission. Employees have no cap on what they can

earn and are expected to go above and beyond to increase their financial reward. Throughout the

training programs, employees maximize their hours and are encouraged to come in early or stay

late. Earning their own commission empowers new hires to continuously work harder. TQL also

offers job positions in numerous other fields. Finance, customer service, recruiting, and others

allow their staff to move within their company. Since the field of sales is ever-changing, TQLs

training program allows new hires to get an exact read on what they will be doing within the

company. This pushes them to develop their own connections and keep up with the demand of

the job from early on.

Benefits

TQL has a long-standing commitment to providing their employees with more than the
 TQL S.W.O.T. 5

average enterprise. With the flat salary and commission, they help their employees to enjoy

vacations, celebrate holidays, and keep themselves healthy. Many TQL employees enjoy paid

vacations as a reward for the extra effort they put in daily. The reward of time off motivates their

personnel to continue their standard of excellence. TQL often hosts holiday and charitable events

within the offices and around the towns where they are located. Along with this, the company

boasts a 24/7 gym and cafeteria to help their employees commit to a healthier lifestyle and a

quick way to refuel on the job. Total Quality Logistics offers many other benefits to their

employees including health and wellness, financial freedoms, and employee perks . Employees

of TQL receive medical and dental coverage as well as a discounted gym membership which

promotes beneficial habits. The company shows that they care about their employees financially

by offering a 401 K plan with employer match, short-term and long-term disability insurance,

and life insurance. There are also opportunities for employee housing discounts as well as a

tuition assistance program to encourage employees to take more university classes. Their tuition

assistance program gives their staff an opportunity to return to school or continue into higher

education than when they were hired.

TQL has a passion for helping the community and is willing to match any employee

donations to the eligible organizations. They match United Way donations as well. TQL sponsors

community events and participates in company-wide volunteering. They raised money to support

breast cancer and even created a Pinktober fundraising event where they donated a portion of all

loads to the American Cancer Society.

Social Media

In todays digital world, one of the most effective ways for a company to stay connected

with their employees and customers is through the internet. Total Quality Logistics has an
 TQL S.W.O.T. 6

outstanding social media base. The company has accounts on numerous sites including

Facebook, Twitter, Instagram, Linkedin, and YouTube. TQL even has their own app that allows

clients to track their truck loads.

Their Facebook, Twitter, and Instagram accounts all consist of daily posts about volunteer

work TQL does in both the United States and other places around the world, tips for truck

drivers, and other day-to-day happenings in the company. These accounts are all active on a daily

basis and especially benefit their truck drivers with posts about ways they can make better meal

choices to stay energized and alert behind the wheel. Other posts on TQLs main social media

accounts are directed towards potential employees by spreading their companys culture and

endless benefits of joining the TQL team.

The TQL Linkedin account has 45,000 followers and is a very strong networking base

that shows their prominent leadership in service work. It also shares information on how to be

hired in order to start earning the countless benefits that the company has to offer. Another great

way to learn about the companys unique benefits is through their YouTube account. They work

to promote job applications, volunteer work, and their outstanding company culture through their

Youtube videos (Total Quality Logistics). In addition, TQL has an active blog that is updated

twice a month which helps in staying connected to its vast company and customer community

(Lifeattql). Another way that TQL is advancing technologically is through their app TQL Trax

that allows clients to track their truck loads in order to ensure an on-time delivery.

Culture and Operations

TQLs unique company culture embodies countless benefits for both their customers and

employees to enjoy as part of the team. Their work hard, play hard mentality is a great way to

motivate their employees to work as diligently as possible while also being able to build a solid
 TQL S.W.O.T. 7

community foundation by participating in frequent fun events hosted at TQL. Being a family

oriented company also allows TQL employees to mix their personal lives with their work lives.

A normal day at TQL consists of playing cornhole or ping pong between calls, roller

blading down the hallways, and even fun challenges to earn bragging rights. This type of healthy

competition is a great way to motivate employees to work hard and create a balanced life, which

may seem very out of the ordinary to other large companies. Employees often describe the

atmosphere as never a dull moment. Multiple videos on YouTube prove that TQLs fun and

uplifting culture encourages everyone on the team to be the best they can be (Total Quality

Logistics).

In a similar aspect, the companys operations are somewhat out of the ordinary in

comparison to their competitors. TQL is able to book truck drivers and transport loads all over

the country without owning a single truck. In most cases depending on the cost of the load, this is

an important strength because all the company needs is office space and hard working employees

to operate the business. Another great advantage of the company is that operations are open

twenty-four hours a day, seven days a week, three hundred sixty-five days a year. This is only

possible because of their extremely hardworking employees who are willing to take calls from

clients at any given time no matter the circumstances.

Weaknesses
Public Image

Although TQL maintains a social presence on networks like Facebook, Twitter, and

LinkedIn, their overall name is not well known. Many companies excel in marketing campaigns

within commercials, billboards, or online advertising, but TQL has a limited reach. Their largest
 TQL S.W.O.T. 8

commercial was for Super Bowl 50 when they partnered with Big Brothers Big Sisters as an

initiative within their TQL Cares program. This commercial could have been a great start to a

longer campaign but was never followed through. Many companies advertise with billboards as

well, and this should be an obvious move for TQL considering all of their shipments cross

highways. A customer delivering their own goods would see a billboard and know the next time

they need something shipped, there is a company available.

Another issue that comes with TQL not owning their own trucks is that their name is

never seen. When a company owns their trucks, they have another opportunity to market by

putting their logo and contact on said trucks. This would not be an issue if TQL were able to

fashion a different way of getting their name out. A remedy of this would be if affiliate truckers

put a bumper sticker or some sort of TQL logo on their truck for a bonus or reward.

Although TQL has numerous awards and accomplishments within the industry, their

reviews on Yelp and Better Business Bureau are close to zero. They have amounted eleven

reviews on Yelp and only have a one star (Nikolai). Along with this, BBB rated them an A

company but the public reviews are 94% negative (Total Quality Logistics, LLC). This issue

could be a reason why so many do not know of them. These issues could easily be fixed if the

company acknowledges the complaints they are getting and makes moves to settle them.

Limited Geographic Reach

The companys growth reached new heights this year and continues to expand from their

start in 1997. In just six years they doubled in monetary size and continue to make improvements

(Figure A.1). However the size of their reach is limited, their only international office is in

Canada and serves the southern points by the US. They would be able to reach more areas if the

amount of offices increased. Currently they hold 59 offices nationwide but most are concentrated
 TQL S.W.O.T. 9

in the Midwest, most of their expansion would be beneficial if they moved into the south and

west along with expanding nationally (Figure A.2). Along with this, other markets are growing

rapidly and make it difficult for TQL to keep up with fiercer competition.

Along with fewer offices, the company utilizes one form of transportation, trucking.

Opening their market into planes, ships, or trains would allow for the company to reach more

while remaining third-party. They could continue to utilize other companies as they have with

trucking and keep costs off their own hands.

Since this move would lead to added costs it is the most difficult of their weaknesses to

overcome. Many companies who utilize the ability to go global are able to skyrocket their

revenue with the added markets. Those who fail are often the ones who are unable to adapt to

different cultures or who cannot keep up with existing companies.

Opportunities
Penalization

When analyzing the opportunities that TQL faces, penalizing drivers who fail to show up

for a shipment that they promised to transport, are significantly late on a shipment, or simply

abandon a shipment could benefit the company in many ways. Currently, TQL flags unreliable

drivers in their system; so in the future they are aware of the fact that the driver has committed a

wrongdoing. This means that drivers who have done the company wrong, may still be able to
 TQL S.W.O.T. 10

continue transporting shipments for TQL. However, if the company took a more drastic step by

financially penalizing drivers who caused issues, they would establish a more reliable trucker

base and be compensated for the inconvenience they have been caused. In turn, this would prove

to customers that TQL will be more likely to deliver the first time. Walmart instituted this policy

by fining drivers 3% for early or late shipments and have seen tremendous reaction (Pandolph).

If every unreliable driver was fined $500, it would guarantee that the amounts of

incidences would decline significantly. Drivers who know they have the potential to cause an

inconvenience to TQL would not want to inquire about a shipment knowing that they would have

to pay $500 out of pocket for a potential wrongdoing. The financial punishment would assure

truckers would take extra precaution to do a good job. This allows TQL to attract drivers who are

reliable and serious about their job. Customers would also feel more at ease with their shipments.
 TQL S.W.O.T. 11

International Growth

There is no doubt that TQL has been extremely successful in its domestic

intermediations, however that is just the tip of the iceberg. If TQL decided to first expand its

business into Canada and Mexico and then eventually worldwide, the company would promote

diversity, have the chance to network with businesses all over the world, and increase revenue.

The benefit of a global expansion with a company like TQL is that the interactions between TQL,

its drivers, and it's customers are done over the phone and computer which enables the company

to be doing business overseas without having to leave the office.

While opening offices worldwide is an option as well, technology enables TQL to be able

to conduct business around the world without the need to physically be there. Due to the fact that

there is no trucks/ property owned by TQL that would need to be shipped overseas for global

expansion to take place, international growth could be relatively inexpensive for the company.

While expansion in general would increase revenue, expanding to different countries allows TQL

to pay drivers in nations with a low cost of living significantly less than they would be paid if

they were doing shipments in the United States. While there are some shipments that go into

Canada and Mexico, making these shipments apart of the daily regime, while expanding all over

the world, would ensure TQLs place as a successful intermediary in an ever changing and

competing marketplace.

Another benefit of international offices is the ability to expand the TQL culture and hire

better. Most professionals in other companies would prefer to be hired by someone from their

own country and who grew up speaking the same language as them. Starting a company with an

American worker, then hiring natives to the country, TQL could assure their unique business

practices and programs would remain unchanged. Global expansion can be down completely
 TQL S.W.O.T. 12

online without physical locations however beginning the construction of global offices could

benefit them with hiring.

 TQL S.W.O.T. 13

Technological Improvements

With a society that is ever advancing technologically, there is no doubt that an industry

will need to keep up with the demands of consumers by using the most updated, state of the art

technology to give it an advantage over competitors. Instead of only transporting shipments

through a freight truck, TQL has the opportunity to utilize drones, planes, submarines, and even

trains to get the job done. TQL can maximize the benefits of all types of technology from new

(drones) to old (trains), in order to transport a shipment in the manner seen most effective for that

particular order. While TQL would not be the first company to ponder the idea of drones, theyd

definitely be the first in their industry to put this into effect. When implemented, using strong,

durable drones for shipments could be efficient and cost effective by cutting out the human

aspect of the delivery.

TQL needs to realize that it is of great importance to keep up with a technologically

advancing society. As said before, while trucks may be most efficient for some orders, it may not

be as effective for others. By maximizing every type of transportation from trucks, trains, boats,

submarines, planes, and possibly drones in the near future, business will extremely thrive.

Freight could be transported overseas which would expand business globally. This would also

allow TQL to potentially become the largest stock brokerage firm rather than the second largest

in America.
 TQL S.W.O.T. 14

Threats
Up-and-Coming Companies

In May of 2017, Uber announced its entrance into the transportation industry focusing on

truckload brokerage. Uber Freights product manager, Eric Berdinis, posted in a blog a

description of this new side of Uber. He stated that Uber Freight is an app used to match trucking

companies with loads that must be picked up (Madrigal). This, in turn, relieves stress from

truckers in having to find a load to pick up. Berdinis stated that Ubers new app allows for

truckers to search for a load and decide if they wish to pick it up. If truckers book the load a

confirmation is sent within seconds to avoid anxiety for truckers. Additionally, Uber Freight is

committed to paying truckers within a few days, fee-free, for every load. Uber is attempting to

take a different angle in which it focuses on small fleets, making up 90 percent of registered

motor carries in the nation. In the future, Uber wishes to increase its freight type to flatbeds,

LTL, and bulk (Madrigal).

Ubers new venture into the truckload brokerage parallels Total Quality Logistics almost

to a tee. Given the popularity of Uber, it could highlight an impending threat to TQL and its

ability to maintain and further expand its company. Additionally, while TQL has several different

payment plans for truckers, a 28 day term where fees do not apply or next day with fees; Uber

pays within a few days without fees. The benefits in switching to Uber could severely decline

TQLs client base. With truckers wanting to be paid quickly and without fees, TQL would need

to upgrade their payment plan and find a way to take out fees. Ubers widely-known brand

allows it to be supported in new ventures even with TQL being longer established.

Amazon, the worlds largest internet retailer, has grown to a monopolistic size. They are
 TQL S.W.O.T. 15

seeking to create their own shipping company with the intent of cutting out the middleman. This

would allow them to gain more control over packages with the possibility of even shipping to

other retailers. This would give them nearly entire control over the market. Not only are large

shipping companies such as UPS and FedEx threatened by the possible emergence of Amazons

shipping company but so is Total Quality Logistics.

TQLs current business plan is to be the middleman and provide a service of

transportation of goods to other companies. Amazon is the worlds largest retailer and has a

healthy sum of revenue, although starting a transportation company is considered difficult with

an already large group of consumers Amazon may be able to pull it off and cut out their

competition. With over 55% of online shopping searches starting on Amazon a large majority of

online purchases is through them. TQL does not just transport packages to consumers but they

are also known to supply retailers in the food industry. Amazon has recently bought the grossing

organic supermarket, Whole Foods. The relationship of Amazon and Whole Foods gives a taste

of what more Amazon could do in the grocery industry. Since this is a large focus of TQLs

shipping, it is necessary for them to find a way to compete.

Global Competition

While TQL primarily focuses its business within America, there are multiple companies

that engage in global business. The ability to expand results in higher revenues and a broader
 TQL S.W.O.T. 16

consumer base. An example being XPO Logistics, a publicly owned corporation, reported

revenue of $14.6 billion with $211 million in free cash flow in 2016 alone. While operating in 32

countries with over 91,000 employees, this company overtakes TQL by a landslide (Our). It

allows for XPO to expand its business ventures to different cultures and countries thus providing

a larger platform to grow. TQL is limited to the areas in which it can conduct business and has a

much smaller base.

Another major company is C.H. Robinson. C.H. Robinson is the largest freight brokerage

firm in the industry working as a global company with revenues in the billions. In 2016 C.H.

Robinson reported a total revenue of $13.1 billion, over six times TQLs. Additionally, C.H.

Robinson employees 13,159 employees which is roughly three times the amount of employees

that TQL has. Since C.H. Robinson is a publicly owned company it allows for more transactions

to occur, thus allowing them to expand globally. C.H. Robinson has offices in North America,

South America, Europe, and Asia. In current business, companies are almost required to move

internationally (About). Shipping in Greece, Japan, and China have skyrocketed and have

proved to be large markets for the transportation industry.

Delays

While the transportation industry runs practically 24/7/365, there are some circumstances

in which deliveries cannot be delivered on time due to weather conditions. If a truck cannot

deliver and is standing idle it is a waste of money. Blizzards can make roads dangerous and
 TQL S.W.O.T. 17

inoperable to drive on, heavy rains carry a danger of hydroplaning, while strong winds have the

potential of tipping trucks. Since the majority of TQLs revenue comes from the trucking aspect,

this places a constant threat to its operations. If trucks cannot move goods, then TQL is not

making any money and therefore losing money.

Another weather condition that proves to be a certain threat is rising sea levels.

According to Potential Impacts of Climate Change on U.S. Transportation, the increase of

population in coastal areas and the inevitable change in climate will result in worsening flooding

and storm surges. The worrisome aspect for the transportation industry is that approximately

60,000 miles of coastal highways experience flooding due to storms and wave action. If these

highways were located in a remote area it would not impose negative consequences; however,

coastal areas are a hub for economic prosperity. In addition, inland areas are also expected to

experience the force of climate change through an increase of precipitation. While precipitation

does not seem like it could cause the transportation industry to halt to a stop it has in the past. In

1993, a massive flood spanning 500 miles along the Mississippi and Missouri River caused land

transportation to stop for six weeks. While this flood affected the transportation industry in 1993,

if this flood occurred again it would affect the transportation industry more today given that a

higher percentage of products are transported by ground. This would affect the whole

transportation industry, including TQL (Transportation).

Furthermore, while weather can impose delays, deterioration in infrastructure imposes a

greater risk to delays in delivery. The American Society of Civil Engineers (ASCE) reported that
 TQL S.W.O.T. 18

American roadways were almost failing with a score of a D. In addition, ASCE reported that

one in nine bridges in America was structurally inadequate. While 3.5 million truckers drive 279

billion miles on deteriorating roads and bridges, it is more than expected that delays will occur

more often (Burch).

Approximately 70 percent of Americas freight is moved on ground transportation.

Thirty-two million trucks transport goods everyday from sun up to sundown, but often times are

stuck idle in traffic jams. In 2016, the trucking industry experienced a loss of $50 billion due to

...wasted time and fuel Several of Americas lawmakers state that due to Americas

roadways, American businesses pay $27 billion a year in extra freight transportation costs,

increasing shipping delays and raising prices on everyday product (Burch).

While TQL may not have control over this aspect of the trucking industry it is definitely a

cost that will hurt not only them but every freight brokerage firm. Deteriorating infrastructure

will cause a rise in cost for truckers and thus displace this cost onto businesses that wish to have

their goods transported. This could potentially decrease sales for TQL. In addition, TQL could

face losses if trucks find themselves in traffic jams more often causing TQL to compensate for

this lost time.

 TQL S.W.O.T. 19

Competitor Technology

While it may seem far fetched and not feasible, robots could potentially overtake the

trucking industry within the next decade, replacing 1.7 million American truckers. Given that

highways are the easiest way to navigate without human intervention and are used for most long-

haul trucks, it will be a theoretically easy transition to go from people to robot.

According to the Los Angeles Times, one major competitor for TQL are robot trucks themselves.

With all the advancing technology in these self driving cars, it could potentially threaten

business for TQL (Kitreoffe). There would not be a need for a middle man anymore, and since

TQL is a middle man, there would not be a need for TQL. In the article, Robots Could Replace

1.7 Million American Truckers in the Next Decade, written by Natalie Kitroeff, it stated that

Trucking will likely be the first type of driving to be fully automated meaning theres no one

at the wheel, (Kitreoffe). This is a serious issue that will jeopardize not only TQL but the entire

logistics industry within a few years. Also, given the rapid rate of technological advancements

anything is possible and not far off.

If TQL is not able to somehow incorporate these robot trucks into their business as they

arrive on the market, it will most likely do damage. It is also possible that things would be worse

off than that. As mentioned before, it is not out of the question that it could cause the company to

no longer be able to make a profit.

If advancing technologies such as robot trucks are coming out soon, who is to say that

there arent other competitor technologies that could do damage to logistics companies that are
 TQL S.W.O.T. 20

being made now. That is one of TQLs biggest threats. The fact that advancing technology is so

prevalent and speedily increasing in America.

 TQL S.W.O.T. 21

Recommendations
The group deliberated on the possibilities TQL has to remedy some of their negatives and

came up with four solutions. The majority of the companys issues come from a lack of adaptive

behavior. Looking at competitors shows what needs to be improved and where the market and

competition are going in the future. Most of the companies we looked at, such as Walmart and

Amazon, are multi-billion dollar companies revolutionizing the industries they represent.

The first solution has to do with the customer reviews that TQL has received on Better

Business Bureau and Yelp. The easiest way to deal with them is to acknowledge the complaints

and train to fix them. Since reviews cannot be proved and are completely based on a customers

opinion and mood, sometimes changes will not reflect in the posts. An incentive program for

customers and truckers to review positively their experience would greatly help. Something as

simple as no fee on a shipment or some money off would give reason to truckers to score the

company better on forums.

Customers opinions also need to be taken care of. Many of the complaints for TQL stem

form a lack or overage of communication. They range from being called too much to not being

able to get ahold of their broker. Another remedy we have worked to find is an app specifically

for the communication between customer, trucker, and broker. Similar to apps like Kik and

GroupMe, this app could alleviate the need to be on constant call and would be much quicker

and more efficient. The app would allow for another form of hands-free communication between

trucker and broker but would also allow for only concise information to be released between the

two. All messages would be saved so both the client and TQL could review it when needed.

Another way TQL could use technology and apps to their advantage would be to pair

with an existing GPS service like Google Maps or Waze. Both these navigation softwares give
 TQL S.W.O.T. 22

important updates to their users. Both are able to show the quickest route, where to go to avoid

tolls, and give instant traffic updates. A partnership would give TQL the chance to advertise and

connect their truckers through one interface. Even without a partnership, TQL has the ability to

develop their own similar programming and combine it with their other existing apps.

A pro and con of TQL is they do not own their own resources. This helps them in saving

costs but removes a method of exposing their brand more. A remedy would be to open up hubs in

major cities where drivers for TQL could stop and where shipments can be warehoused. Starting

small and eventually building to more and more would allow TQL to control the amount of costs

going into the development of them. These stations would allow TQL to have more direct control

in their shipments while still being able to remain third party and not put the expense into

repairing or buying trucks.

Finally, our team has read articles on Wal-Marts utilization of penalization for their late

and early truckers and believes this could benefit all shipping companies. Along with penalizing,

a system of rewarding truck drivers for excellent service would entice them to continue

performing well at TQL. Penalization systems have been proven effective but could be improved

with an added benefit for drivers. Since many clients would respond better to a reward for safely

delivering a package on time, than a fee or worse.

Overall, TQL is in a large, ever-changing market and industry. This brings the ability to

grow and really improve their current practices but also poses many threats with their

competitors ranging from small business to multi-billion dollar companies. Their current

practices have gotten them far but with slight arrangement could propel them higher.

Appendix
Figure A.1
 TQL S.W.O.T. 23

Figure A.2

Figure A.3
 TQL S.W.O.T. 24

Figure A.4
 TQL S.W.O.T. 25

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