Question

LVTLS was established in 1960 by Mason Delp as a local cartage company to provide pickup
and delivery service for several interstate trucking companies in the Greater Lehigh Valley area
of Pennsylvania. Mason saw signs of change in the area between Allentown and Philadelphia
with the improvement of the interstate highway system and the improvements in the
Pennsylvania Turnpike System providing North-South and East-West corridors along with other
roadway additions and improvements. In addition there was a definite popu- lation sprawl around
Philadelphia. The roadway additions and improvements provided transportation access to many
communities. Mason’s observations were correct and the area changed from predominantly
agriculture to companies producing and manufacturing products and services.
One very significant development was the establishment of a number of facilities for producing
pharmaceutical products and an agglomeration of companies and services to support that
industry. The growth and success of these companies provided the opportunity for Mason Delp
to expand his motor carrier services to provide both less-than-truckload and truckload service
throughout the mid-Atlantic states. When the motor carriers were deregulated in 1980, Mason
established warehousing services in Lansdale, Pennsylvania as a complement to his trucking
services. At that point “Logistics” was added to the name of the company. He promoted his son,
Paul, to vice president of the warehousing division because of his experience and education
In 2000, Mason retired and Paul became the CEO. The company experienced growth in the
warehousing business as the economy was expanding in the early years of the twenty- first
century and Paul invested heavily in information systems and technology. However, the great
recession of 2008 caused challenges and financial pain for LVTLS because of a downturn in
business activity. The investments in information systems and technology mitigated the impact
of the downturn.
The organization has fully recovered by 2012 but Paul now recognizes the need for cost control
and strategic relationships to buffer future economic volatility. He is particularly concerned
about the business activity he has with pharmaceutical companies because of the challenges that
they are facing. However, Paul recognizes that their challenges may be opportunities for LVTLS
to develop collaborative relationships with a number of these companies to help them improve
their supply chains management.

CASE QUESTIONS
1. Discuss the challenges faced by the pharmaceutical industry.
2. Which of these challenges provide the best opportunity for LVTLS? Why?

please include reference and citations if any is used.

Answer 1

1. The pharmaceutical industry is and will continue to be a billion dollar necessity and with more and more people gaining access to health care there are huge opportunities for growth. There are however several barriers to the growth of this industry. While there is a huge cash flow for this company there is also a large outflow of cash into maintaining and innovation products. When you combine the costs with the regulation’s, laws, and pricing control, these companies need to look toward the target market for places to grow. There are also challenges of accessibility for a large number of people who need the health care services that these companies provide. This isn’t only a physical problem of accessibility but also a financial issue for most middle to lower class citizens.

2. The best advantage that LVTLS has to gain from the challenges is the transportation and strategic planning systems. any improvement that can be offered in terms of customer service would also be beneficial and help to improve their customer competitive position for the future. LIVTLS should be able to help to reduce transportation and warehouse related cost since this is their speciality. they would look for opportunity to combine shipment for lower rates and try to improve delivery times to customer location.