Central transport assignment PDF

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CHAPTER CASE 1.1: Central Transport, Inc. p.31 Case Notes: 1. Why and how has the competitive market place for SAB changed in the last five to seven years? -Large retailers, such as Wal-Mart are putting pressure on distribution companies like SAB since they can buy directly from manufacturers, cutting down on costs -Major external changes include globalization, technology, organizational consolidation, the empowered consumer, and government policy and regulation Elaboration:    

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Due to globalization, the demand and supply of products got uncertain which was leading to economic crisis. Consolidation of organizations came into power which in turn bought more demand and charge. Applying right technology was a challenge due to small and medium scale organizations designing their own systems to manage supply chain. The empowerment of consumers demanded good quality products and services and it paved way to access the data or information about the products with more options and different methods. Imposition of government policies and regulations affected the organizational aspects (communication, finances and transportation).

2. What advantages might Central experience in the proposed new venture? -SAB’s desire to increase its transportation base and customer services means that Central will likely receive additional business. Elaboration:    

It could fascinate more retailers which in turn will improve warehousing and inventory management. Employability will increase along with expansion of business in different areas. Cost can be controlled or get lowered and be price competitive in the market. Expansion of market opportunities.

3. What issues would SAB and Central face in the proposed new approach?

SAB: Adding services could add costs that make them unappealing to profit-squeezed customers Central: “Growing pains” due to challenges from driver shortages, higher fuel costs, and changes in driver hours regulations. Elaboration:       

Hiring qualified professionals for the right job and position might take longer than expected time. Implementing the right technology would be challenging. Gathering and storing data will need more attention and security. Effective management of costs or price might get difficult. Meet the expectations of legal formalities or that can become an issue. Maintaining communication pace might get difficult at times. Fluctuations in management due to bullwhip effect....