Sunday, July 10, 2011

SIRVA, Inc.: Information from Answers.com

One of the world's largest relocation and moving services companies, SIRVA operates in more than 40 countries. NAVL The company boasts 300,000-plus relocations a year; outsourced moves, delivered under contract with corporate employers, and government and military customers to transfer personnel, account for the majority of SIRVA's sales. The company and its US subsidiaries emerged from Chapter 11 bankruptcy protection in mid-2008. In addition to residential, corporate, and government relocation services, Allied Worldwide provides domestic and international shipments of high value goods, such as delicate electronics, communications, and medical equipment and fine art. Services at North American Logistics include warehousing, parts distribution, less-than-load transport, and emergency shipments of replacement parts; these services are offered in domestic and international markets. The transaction merged two of the oldest and largest Moving Companies in the United States. Both companies emerged from the increased mobility of Americans during the 1920s and 1930s when highway development and road improvements eased family relocations over longer distances. Prompted by the National Furniture Warehousemen's Association, the group banded together to create more efficient operations, primarily to limit the number of empty miles as trucks often returned empty from a long distance delivery. Allied Van Lines provided dispatch and information services from a central office in Chicago, allowing for coordination of outbound and return deliveries. In 1929 AVL transported more than 5,700 shipments and recorded $850,000 in revenues. By 1931 the company counted 261 truck owner-agents, an additional 113 sales agents, 234 vans, and 13 dispatch offices, attaining a reputation as "the careful movers. Allied Sea Van Company provided international shipping services beginning in 1958, finding many of its customers among military personnel stationed abroad. Although AVL had been originally established as a nonprofit company, stockholders approved conversion to for-profit status in 1968, allowing excess funds to be retained for capital improvements. They were dissatisfied with the quality of that company's operations and the lack of an extensive agent network. In addition to opening a central dispatch office in Cleveland, NAVL issued the moving industry's first pricing tariff, by county, to simplify agent sales. By 1938 the founders built a network of 120 agents. In 1940 the company started to provide household moving with company-owned vehicles driven by company employees. Overland and water transportation services to Alaska began in 1952, and expanded into van-sea-van service to Europe in 1956. The company initiated a quality assurance program to enhance estimation, packing, storage, and transportation performance. The company later extended the program to agent warehouses and facilities. Also, in 1965 NAVL began to provide transportation for sensitive high technology and electronic equipment and other special needs with the formation of the High Value Products division. Trucks for the division were equipped with air-ride suspension for a smoother ride. Equipment on some vehicles included lifts, cranes, or climate control, the latter for art and medical research. The company owned the trucks which transported delicate goods and manned them with highly skilled drivers. During the early 1970s NAVL's reputation for quality played a role in retaining a contract to transport the renowned King Tutankhamen exhibit of ancient Egyptian treasures. Initial changes involved adding the red, white, and blue colors to the logo and relocating its headquarters to Fort Wayne, Indiana, in 1978. During its tenure as a subsidiary of Pepsico, NAVL thrived despite a difficult economy and industry deregulation. Corporate Relocation slowed as middle-management employees often shunned relocation. Both NAVL and AVL responded to the situation by expansion in other areas of service. In 1975 AVL launched its Special Products Division, to handle delicate, high technology equipment, art exhibits, and other special needs. The resiliency of the Household Goods Group came from military and government accounts and new agent locations, with 832 in 1981, the largest network in the country. Prior to the change the Household Goods Bureau fixed prices used industry-wide, based on weight by mile, and competition among van lines occurred mainly over service quality. Deregulation allowed carriers to increase or decrease rates by 10 percent without approval by the Interstate Commerce Commission. After deregulation carriers lowered prices, offering discounts up to 60 percent off previous rates, and new companies entered the business. The price to haul household goods decreased from $1. Meanwhile the whole system of determining prices became more complicated with regional pricing, including within a metropolitan area. Whereas AVL's mainframe computer had been used primarily to track shipments and equipment, deregulation made strategic pricing imperative. In 1987 AVL invested in a system of personal computers, allowing employees to determine profitable but competitive prices more quickly. The company gained federal approval in 1982 to transport almost any general commodity. For instance, newly produced automotive parts were shipped to assembly plants as needed, saving customers inventory expense by storing freight at intermediate warehouse facilities. By 1983 general freight accounted for 60 percent of total revenues of $560 million; NAVL recorded net income of $25 million in 1983. Despite difficulties in the moving industry during the 1970s and the early 1980s, NAVL recorded a compound annual growth rate of 13. Norfolk Southern purchased NAVL for $315 million, plus accrued interest for deferred payment, finalizing the sale in June 1985 for a total of $375. Also, the road-railer cars were connected to lighter and faster lines of transportation. In 1993, Conrail purchased a stake in Triple Crown, initially adding four rail terminals to the existing system of 12 terminals. In 1992 NAVL formed a joint venture with 60 European moving companies in 15 countries. With a 40 percent stake in UTS Europe, NAVL shared its operational technology and expertise to coordinate shipments for fully loaded trucks and fewer empty miles. In 1988 AVL initiated VanRail service using shipping containers easily transferred from truck to railcar. The business of moving household goods was a mature and seasonal market, with most moves occurring during the summer, while commercial accounts provided year-round stability. Logistical parts distribution and temporary warehousing of goods became more important aspects for competing for corporate clients in domestic and international markets. Both NAVL and Allied Pickfords offered international service which streamlined the transport of a client's retail goods by offering a single-source of distribution, rather than a number of carriers, transporting goods from the factory to port of departure, and from destination port to warehouse. Business slumped in all areas, with the biggest decline in Relocations Services, at 9 percent in 1991; NAVL fared well compared to the 10 percent decline nationwide. Though business remained steady in the division, losses prompted Norfolk Southern to put that business up for sale. Without a buyer, however, NAVL discontinued service and dismantled the division in 1993. The company obtained lucrative contracts for parts distribution with Wang, Hewlett-Packard, and GE Medical and a contract renewal with IBM. AVL's standards, under "The Quality Alliance," sought to improve customer service with its agents, drivers, and corporate personnel. In 1995 AVL became the official carrier of the Imperial Tombs of China exhibit, featuring art and treasures from 500 B. In 1992 the company introduced the first mobile driving simulator, taking driver education classes directly to drivers nationwide. The company became the first van line to receive ISO certification for the movement of certain electronic equipment. The merger also involved Pickfords Removals, a moving and storage service, whose history has been traced to the 1630s, with operations in the United Kingdom. The predecessor company was founded in 1933 and Global grew to become one of the largest van lines in the country, offering domestic and international relocation services and special handling transportation services. Global established industry standards for equipment, including air-ride suspension, climate control, donut wheel trailers, high cube trailers, logistic-track cargo systems, and aluminum cargo beams. It was the first Moving Company to develop separate divisions for electronics and exhibits. Global gained renown by becoming a major carrier of NASA equipment, such as lunar rovers and manned spacecraft. Allied Worldwide integrated Global into the NAVL network of agents, but retained the brand name. Activities included restructuring the division and several executive appointments. In Europe, North American Logistics initiated a system of "parts banks," decentralized warehouses that stored replacement parts for electronic equipment. These warehouses were located strategically so mobile repair engineers had easy access to replacement parts. Warehouse computers were linked to client systems for inventory availability and stock management. The company completed implementation of the system in October 2000.

2 comments:

  1. Me and my friend were arguing about an issue similar to this! Now I know that I was right. ! Thanks for the information you
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    North American Moving Company

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  2. Thanks for excellent information I was looking for this information.

    Out of Gauge cargoes & Dangerous Goods transportation

    ReplyDelete