Answered: Identify the primary issues related to…

MARKETING 2018

19th Edition

ISBN:9780357033753

Author:Pride

Publisher:Pride

Chapter15: Retailing, Direct Marketing, And Wholesaling

Section15.1: L.l.bean: Open 24/7, Click Or Brick

Problem 2VC

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SATURN CORPORATION: IMPROVING THE PLANT RETAILER LINK IN THE AUTO INDUSTRY SUPPLY CHAIN 1. Identify the primary issues related to the selection of outbound transportation providers and discuss their importance to each process stakeholder. What other factors and issues should the Vehicle Transportation Team consider in the selection process? 2.Which delivery method would you recommend for each new retailer to minimize the outbound logistics costs per vehicle? 3. Which delivery method would you recommend for each new retailer to minimize transit time and transit time consistency? 4. Assuming that each new retailer will sell 720 vehicles annually, which delivery method would you recommend for each new retailer to minimize vehicle damage? 5. What is your final recommendation (truck or rail delivery) for each new retailer? Why? Which stakeholder groups are likely to be most or least satisfied with your decision? In addition, map the US territory that is likely to be served by truck delivery. 6. CSX has suggested that Saturn consolidate all deliveries for southeast Georgia and the east coast of Florida for a once per week unit train delivery. The total outbound cost would be $210 per vehicle and CSX guarantees a 3-day transit time. How would this affect Saturn's delivery methods to their retailers in Savannah, GA, and Jacksonville, FL? 7. Burlington Northern Santa Fe (BNSF) Railroad has approached Saturn about using the Autostack system to deliver vehicles. Autostack is an intermodal delivery system in which six Saturn’s can be loaded into a standard 48 ft container at Spring Hill and delivered to destination railyards via double stack intermodal service. The cars would be unloaded and delivered by drayage carriers. BNSF has offered 2-day transit time to Arlington, IX, at a rate of $232 per vehicle. Loading costs of $13.50 and drayage costs of $12.50 would be incurred. How would this opportunity affect the delivery method recommendation for the Dallas, TX, retailer?

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