Central Transport Inc.
SAB distribution is a small distributor that deals with the delivery of goods to smaller distributors, wholesalers and retailers. Susan Weber, new CEO of SAB Distributions has offered a collaborative relationship to Jean, current CEO of Central Transport. Because of the external forces in the competitive market, SAB is losing the competitive advantage over other companies entering the distribution market. Susan is convinced with the idea that SAB needs to change, expand to take on some larger retailers in the Mid-Atlantic States and provide more services like third-party logistics. Thus, Susan made a tentative plan for modifying the strategic direction of SAB and looking forward to collaboration of Jean and Central transport to transform again. With this collaboration, SAB wants to get into more third-party logistics responsibilities that includes outsource delivery, inventory, transportation, and warehousing management. SAB distribution wants to approach Wegman’s Food Markets Inc., a price competitive company as their first customer to market their new Services.
A1:
In the last five to seven years the five major external forces might have changed the competitive market place for SAB. They are Globalization, Technology, Empower consumers, Power shift in supply chain and Government regulations.
1) Globalization:
Globalization is most important factor in driving the rate of change and shaping our economic and political landscape. However it raised three important issues or challenges for supply chains of the global economy:
More volatility of unpredictability of supply and demand.
Shorter product life cycles, and
The blurring of traditional organizational boundaries.
2. Technology:
Technology has made a major impact as a facilitator of change. It allowed the individuals and small organizations to connect to the world’s knowledge pools anytime to create various...