Central Case Study

LG426

08/24/2014

Central Transport, Inc.

1) The competitive market place for SAB has changed in the last 5-7 years because a larger amount of companies are offering more value services to its customers. Many large companies can experience lower costs associated with logistics when there are strong partnerships and good values added to their logistics/supply chain needs. Collaboration is becoming more common between organizations in the supply chains to gain mutual cost savings and help improve their customer service. With retailers growing and expanding, there are more needs for distribution centers and logistics/supply chain services needed at each and every distribution center. In this case Wegman’s is looking to save money. Wegman’s can save on costs associated with logistics, while manufacturer should be able to offset its additional cost with increased sales because of the more accurate and timely information of products to customers. Wegman’s is seeking more value-added services in order to save on costs, while having a good service provider.

2) Some advantages Central can experience are expansion in the U.S. when Wegman’s sets up a new distribution park in northwestern Pennsylvania. Susan is already seeking to attract some large retailers in the Mid-Atlantic States. Central can better collaborate with SAB being they will have a place in the Mid-Atlantic area market. Business growth can occur by branching out with different companies in their distribution centers. This is great for long term business and the ability to market their service to other companies, in an effort to gain their business as well. Demand flow should be strong being there is a new distribution center in the area. When Wegman’s experiences lower costs associated with inbound logistics, they can spend more money on marketing and gaining more business from consumers; which will turn around and create more business and long term logistics needs by the retailer....