Morgan Olson: Re-engineering an industry

Source: Exec Digital USA

Date :8/13/2008 12:02:40 PM

Morgan Olson’s development of lightweight delivery truck bodies makes it a heavyweight in its field.

Written by Gabe Perna and Produced by James McCann

It seems astounding Jimmy Olson knew little about truck bodies when he founded Morgan Olson more than 60 years ago, because today the company is a multimillion-dollar trucking equipment manufacturing company with many high profile clients. Olson must have done something right.

According to the company’s website, while he did not know much about truck bodies he did see a need for lighter trucks when his friend, who owned a Laundromat, complained about his trucks’ heaviness. From there Olson came up with the idea of aluminum walk-in body. Olson and friends developed it, named it Kurbside and eventually watched it become a product of high demand.

Years and years later and Morgan Olson is now a company with 475 employees, or as they refer to them “team members”, and a revenue of US$100 million. While they continue to produce high-quality aluminum walk-in bodies, their business has expanded to include the sales of aftermarket truck parts.

Vice president of sales and marketing, Steve Miller, says even with all their success there is only one thing at the forefront of every team member’s everyday business affairs. “In terms of a typical day, we spend a lot of time focusing on the customer’s needs. We work on production schedule, on time delivery, and quality. We are focused on the customer and their satisfaction. Customer satisfaction is our constant theme, it’s our number one priority,” says Miller, a 16-year veteran of the industry.

Clients

Morgan Olson’s strong suit in the development of walk-in bodies is their impressive list of customers. At the top of that list are various parcel delivery companies. “In terms of recognizable names our very strategic partners are UPS, Fed-Ex and DHL. Those are the prominent ones a national audience would recognize,” Miller says.

However, these are not the only customers that Morgan Olson can claim. Along with the various parcel companies, Morgan Olson also works with baking and snack food companies such as Frito Lay and Lance Foods, laundry and uniform services such as G&K, Aramark, and Unifirst, newspaper delivery trucks, utility vehicles and speciality vans.

Of course, since Morgan Olson is a second stage manufacturer they are equally as reliant on chassis manufacturers. Chassis manufacturers are the companies that manufacture the automotive components such as engine, transmission, frame, and tires and wheels. Morgan Olson finishes the job.

Morgan Olson’s chassis manufacturers include Ford, Workhorse and Freightliner. “We cannot exist without our chassis manufacturers. We are second stage manufacturers. We complete their vehicle. Our product in the commercial truck business is useless without a chassis. Our health is critical to them and their health is critical to us as well. And we have great relationships with them,” says Miller.

Changes

Eric Yeager, vice president of operations at Morgan Olson, says the biggest change he’s seen over the years in the industry comes from an operational standpoint rather than technological. Yeager, a 23-year veteran of the automotive industry, says the shift to lean manufacturing has been an adamant transformation in operations.

“Lean manufacturing is the most popular methodology used to improve operations from a cost standpoint. To me, it’s all about customers, quality and price standpoint. The automotive industry is the leader in that, a lot of the other industries are now picking it up,” says Yeager.

As far as actual material advancements, Yeager says metal stamping and fabrication have changed over the past 20 years. Yeager says they are now able to make metals lighter yet stronger at the same time. A thinner gauge metal becomes stronger as you bend it. There’s also been advancement in safety for employees according to Yeager.

Fuel issues

The automotive and trucking industries are of course not without issues. Miller says the biggest issue facing Morgan Olson customers these days is without a doubt the cost of fuel. The problem may be solved with technology according to Miller.

“This may include using lighter weight materials which aren’t cost competitive yet. In the commercial vehicle market, many products are aluminum. In the future, we’re looking at using cost effective products that will lower vehicle weights, thus providing customers with a vehicle that uses less fuel,” says Miller.

Miller says the current economy is an issue for its customers. “Economic conditions are a challenge for most companies today. Like most companies, our customers are challenging us to provide more value for less money. We understand this dynamic and look for creative ways to meet their requirements,” says Miller.

Team members

At Morgan Olson, Yeager says they proudly boast a great relationship with their team members. There is a measure of respect between team members, and they hold each other accountable daily and share the same unified company goal.

“We drive to empower our employees. We foster internal growth and provide opportunities for advancement within the company. We have a communications meeting at the beginning of every shift. We have meetings with individual work cells where we communicate ideas and suggestions things that would help team members be more successful with their job. We give them the kind of tools they may need, support they may need, ideas on how they may be more effective with their job,” says Yeager.

Miller added it’s this makes Morgan Olson a unique company. “We very rarely make strategic decisions unilaterally. We have a lot respect for each other and each other’s opinions. Our important decisions are made by exchanging thoughts and ideas cross functionally. We collaborate and make a group decisions. Most departments in business are autonomous and make their decisions without input from others. We have created a culture that encourages input, debate, and dialogue from everyone. I think that’s unique in business.”