Susan Weeper's proposition to collaborate with Central Transport In transforming the direction of SAAB. Susan wants to attract larger retailers In the Mid-Atlantic States by adding services such as warehousing, transportation delivery, and Inventory management to their business model. Susan is proposing the idea to Jean because Central Transport has experience in these areas, and Central Transport has worked with SAAB Distribution in the past.
Susan also approached Washman's Food Markets as a potential customer for SAAB Distribution's new services. Washman's Food Markets already offer an array of additional services to customers, such as in-store bakery, in-store cooking demonstrations, and take-out options. The competitive market place for SAAB has changed tremendously over the last five to seven years. The rate of change for the competitive market place Is driven by several external forces Including globalization, technology, organizational installations, empowered consumers, and government policy and regulations.
For example, the Impact of the consumer Is much more direct than It was seven years ago. Today, the consumer has placed increased demands at the retail level for an expanded variety of products and services. This explains why Washman's business model offers so many added services to customers shopping in their grocery store. By offering these additional services, Washman's can set themselves apart from their competitors. It is important that SAAB focus on the customers, and be flexible and responsive to them.
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Central Transport could experience many advantages in the proposed venture. First off, Central and SAAB have worked successfully with each other in the past when SAAB transformed its operations to respond to challenges In the competitive market place, therefore It will be a fairly smooth collaboration, since the two have previously done business together. The new proposed venture would also be a relatively successful business opportunity because Central already has experience in the areas of warehousing, transportation delivery, and inventory management.
It would be a great opportunity for Central to expand their current market as well as open up many new windows for business. This would increase Centrals profit margin. SAAB and Central could face a number of issues if they were to follow through with the new proposed venture. Some possible issues include supply chain networks, complexity, inventory development, information, cost and value, performance measurement, technology, transportation management, and apply chain security.
It Is important that both SAAB and Central address these problems and issues appropriately in order for the new venture to run smoothly. By hilariousness In summary, this case is about SAAB Distribution's CEO, Susan Weeper's proposition to collaborate with Central Transport in transforming the direction of SAAB. Susan wants to attract larger retailers in the Mid-Atlantic States by adding services such as warehousing, transportation delivery, and inventory management to their business to seven years.
The rate of change for the competitive market place is driven by several external forces including globalization, technology, organizational example, the impact of the consumer is much more direct than it was seven years other in the past when SAAB transformed its operations to respond to challenges in the competitive market place, therefore it will be a fairly smooth collaboration, since Centrals profit margin.
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