Central Transport Inc
Case Study: Central Transport, Inc.
I. Basic Facts
Jean Beierlein is the new president and CEO of Central Transport (CT) and has received an offer for a collaborative relationship from Susan Weber, who is the current president and CEO of SAB Distributions. CT and SAB has historically worked together and has developed a long lasting business relationship. The market has undergone dramatic changes that caused SAB to make changes in order to strive to remain competitive. However, SAB is losing their competitive edge over their competitors within their distribution market. Thus, SAB realizes they must use a different approach with the assistance of CT. Susan stated that SAB needs to change its business model and expand to attract larger retailers in the Mid-Atlantic States and provide more services similar to third-party logistics companies. They intend to use the third-party logistics for most of their logistics services.
SAB distribution made a decision to approach Wegman’s Food Service, Inc. as their first customer to market their new Services. Wegman’s is a privately owned successful Northeastern company. Wegman’s has globalized their business over the past 15 years and offers customer oriented services such as in-store bakery, restaurant and deli, take out options as well as cooking demonstrations within their stores. SAB believes Wegman’s will listen to her proposal concerning their expanded services to help Wegman be more competitive.
I believe SAB realizes the potential of this business venture which will provide a competitive advantage in distribution. SAB will need to establish more third-party logistics responsibilities and/or outsource delivery, inventory, transportation, and warehousing management. SAB will continually need to evaluate their products and services to remain competitive with other distribution companies. With CT’s experience third-party logistics they both can successfully take on the new changes as well as any challenges. If they work
I. Basic Facts
Jean Beierlein is the new president and CEO of Central Transport (CT) and has received an offer for a collaborative relationship from Susan Weber, who is the current president and CEO of SAB Distributions. CT and SAB has historically worked together and has developed a long lasting business relationship. The market has undergone dramatic changes that caused SAB to make changes in order to strive to remain competitive. However, SAB is losing their competitive edge over their competitors within their distribution market. Thus, SAB realizes they must use a different approach with the assistance of CT. Susan stated that SAB needs to change its business model and expand to attract larger retailers in the Mid-Atlantic States and provide more services similar to third-party logistics companies. They intend to use the third-party logistics for most of their logistics services.
SAB distribution made a decision to approach Wegman’s Food Service, Inc. as their first customer to market their new Services. Wegman’s is a privately owned successful Northeastern company. Wegman’s has globalized their business over the past 15 years and offers customer oriented services such as in-store bakery, restaurant and deli, take out options as well as cooking demonstrations within their stores. SAB believes Wegman’s will listen to her proposal concerning their expanded services to help Wegman be more competitive.
I believe SAB realizes the potential of this business venture which will provide a competitive advantage in distribution. SAB will need to establish more third-party logistics responsibilities and/or outsource delivery, inventory, transportation, and warehousing management. SAB will continually need to evaluate their products and services to remain competitive with other distribution companies. With CT’s experience third-party logistics they both can successfully take on the new changes as well as any challenges. If they work