preview

Case Study Central Transport, Inc

Decent Essays

Assignment: Week 3 Case Study Central Transport, Inc Jason M Williams/3111448 23 March 13 TLMT441 Advanced Business Logistics American Military University Instructor: Roxanne Grosett Introduction Susan Weber, the new president and CEO of SAB Distributions has offered a new collaborated relationship to Jean Beierlein, president and CEO of Central Transport. Dramatic changes in the market have changed SAB, and it continues to get worse. SAB is losing the competitive advantage over other companies entering the distribution market, and it is causing SAB to use a different approach. According to Susan, SAB needs to change, and get away from the “status que”. SAB has decided to expand to take on some larger retailers in …show more content…

Susan has come up with a strategy to maintain the competitive advantage, by involving 3PL’s. According to Susan, Central Transport can arrange the 3PL service of warehousing, transport and delivery, and inventory management. Jean knows there are a lot of challenges with the proposal and adoption of the 3PL. Another problem the SAB is facing is globalization. “Globalization has impacted SAB’s business, because of an increase in imported products for the diverse population of the United States and the ongoing search for lower-priced alternatives (Coyle, Gibson, Novak, 2009).” If the plan is successful, both companies need to globalize and broaden clientele to increase revenue. When a company’s materials and outsourced services costs account for 40 percent or more of its total operating budget, a small decrease in material and service costs can increase profit (Burt, Petcavage, & Pinkerton, Richard, 2010). If SAB can supply its products to companies like Wegmans Food Market, Central Transport can afford to take the risk. Recommendations for Improvement Susan, the CEO of SAB needs to remember that for most people change is uncomfortable. The effects this strategic change will have on the entire organization needs to develop and not be rushed. If the change is accomplished to quickly, the company could start losing key employees that can take SAB to the next level of competitive advantage. SAB must successfully manage the

Get Access