YRC Worldwide accelerates integration strategy

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YRC Worldwide announced today, Sept. 8, that it is accelerating its integration strategy, focusing on the corporation’s two largest operating subsidiaries, Yellow Transportation and Roadway. Since acquiring Roadway, the company has reduced duplicate back-office functions, shared technology applications, formed common management teams and, most recently, combined corporate sales.

With today’s announcement, the companies are taking steps to bring together the local sales teams and offer a comprehensive portfolio of services through one operating network. The Yellow Transportation and Roadway brands will remain in the marketplace represented by a combined sales force of more than 1,000 account executives. YRC Worldwide says the integration will occur in phases to ensure service continuity to customers and provide a seamless transition to employees.

By operating one national network, the company expects to increase its network density significantly, resulting in lower fixed costs and enhanced service performance to its customers. The effort is expected to extend through 2009 with a run-rate annual operating income improvement in excess of $200 million.

“Given the positive customer response from our recent combination of the corporate sales teams and the increasingly dynamic operating environment, we believe now is the right time to take such significant action,” says Bill Zollars, chairman, president and chief executive officer of Overland Park, Kan.-based YRC Worldwide. “The economic downturn has created the capacity in our networks needed to effectively integrate our operations, while improving service reliability and speed. By offering a comprehensive service portfolio through one unified network, we can more effectively serve our customers and simplify their experience.”

When asked about the impact on employees, Mike Smid, president and CEO of YRC North American Transportation, said, “Our employees understand the challenges of the marketplace and are excited to improve the way we do business. From our drivers to account executives, every employee will play a key part in continuing to provide our customers exceptional service and enhance our growth.”