Sab Distribution Company

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 (Rosen 2009). However, they can achieve much more with Central Transport, which ha 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.There are major external forces have changed the competitive market in the last five to seven years:

1. Globalization is most prevalent factor in the changing business world. This environment manifests itself in opportunities and threats both economically and politically. However there three important issues or challenges for supply chains of the global economy are (1) more volatility of supply and demand, (2) shorter product life cycles (tentative strategic plan), (3) the blurring of traditional organizational boundaries.

2. Technology has made a major impact as a facilitator of change as companies have transformed their processes. Technology has allowed individuals and smaller organizations to connect to the world's knowledge pools to create an unbelievable.

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. She knew if SAB did not adapt to changes in the global market then it would die and cease to exist by making 4 changes:

1. Improve warehouse efficiency.

2. Made customer orders quicker and with less errors

3. Arranged for more products to be shipped which lead to lower rates and better service

4. Bought technology that reduced cost and improved order fulfillment to customers

Therefore, this places Jean in a dilemma. The response to such a proposal can be a tricky one. This is because the proposal has a lot of challenges. The adoption of the logistics of third [parties might not work. These other companies may even decline to the offer. Therefore, the plan might not go on as predicted.

However,