Describe contract logistics. How does contract logistics affect the efficient deployment of supply chain management?
What will be an ideal response?
With contract logistics, or outsourcing, a company turns over the entire function of buying and managing transportation to a third party, usually an independent carrier. Third-party carriers have economies of scale because of consolidating transportation modes and can also offer extra services. Many corporations use contract logistics due to budget constraints, mergers and divestitures, and increased globalization. Outsourcing can also apply to contract warehousing.
Outsourcing allows companies to cut inventories, locate stock at fewer plants and distribution centers, and provide the same service level or better. Outsourcing often leads to exclusive partnerships between suppliers, retailers, or manufacturers, and carriers, warehousing experts, or logistics management suppliers. These partnerships allow better inventory management, the ability to meet delivery dates, efficiency in filling emergency orders, and high accuracy in filling orders. Thus, outsourcing is becoming increasingly important in efficient deployment of supply chain management.
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Prahalad and Hammond have identified several assumptions and misconceptions about the "bottom of the pyramid" (BOP) that need to be corrected. All of the following mistaken assumptions are correct except:
A) The poor are too concerned with fulfilling basic needs to "waste" money on nonessential goods. B) The goods sold in developing markets are so expensive that there is no room for a new market entrant to make a profit. C) The poor have no money. D) People in BOP markets cannot use advanced technology. E) Global companies that target BOP markets will be criticized for exploiting the poor.
An excess benefit transaction occurs when ______.
A. a service contract exceeds financial limits B. an organization exceeds its fundraising goals C. an organization goes above and beyond to meet its mission D. employee compensation exceeds the value of services provided
Which of the following channel combinations is least likely?
a. nonverbal and written b. nonverbal and oral c. oral and written d. oral, nonverbal, and written
Which of the following does the covenant of further assurances promise?
A) The owner has included all the required covenants in the deed. B) There are no easements on the property being conveyed. C) The grantor will provide the grantee with any additional documents that the grantee may require to perfect his or her title to the property. D) The grantee will grant an easement by necessity to the grantor if it is required for the grantor to access his or her property.