Case 1.1 Central Transport

Case 1.1 Central Transport, Inc.

Summary

Introduction

The new CEO of SAB distribution has come up with a proposal for the Central Transport. In the last five to seven years, the competitive market place for SAB has continually been tough. There have been more firms into the industry. This poses a significant threat to SAB since it causes them to take drastic measures. These adjustments that they made caused their relationship with Central Transport to deteriorate. However, the new CEO, Susan, hopes that there can be a reunion for the better good. She thinks that they can be more influential as a team. This way, they can attract more retailers in other nations.

Background Information

SAB distribution is a company that deals with the delivery of goods and services to consumers. It even offers door to door services to its consumers. It operates in over 200 countries in the world. Some of the products that it delivers include freight, documents and parcels. It has about 47 jet fighters and 26,000 road vehicles. Therefore, this is a company that relies on transport. Its relationship with central transport is also necessary. This is because they both deal with transport.  Therefore, the essay below is about the relationship between these two agencies and how it has fluctuated over time.  SAB may have the strategies and techniques needed to be successful.  However, they can achieve much more with Central Transport, which has more experience and influence in the sector.

Problems and Other Key Challenges

The major problem for SAB is the competitive market. The increase in competition in the industry causes the distributing organization to be at risk. Therefore, there is a need for new and effective strategy. Susan intends to come up with a strategy that includes involving third party logistics. This includes other companies that deal with warehousing, transport and delivery and inventory management. Therefore, this places Jean in a dilemma. The response to such a...