In your post, consider ways that a company can address its need for outbound tra
ID: 350866 • Letter: I
Question
In your post, consider ways that a company can address its need for outbound transportation and recommend the best way to reduce overall costs. Consider the following:
What are the benefits and compromises of having a private fleet versus outsourcing?
How has deregulation affected the transportation service industry?
How can an operation aggressively reduce costs without sacrificing service to the customer?
You should also include relevant research and sources related to this topic. Be sure to use proper citation and formatting.
Explanation / Answer
private flee is referred to the company who owns its own vehicle for transportation of goods or products .Any operating business whom doesn't own a private flee , for them doing business is very hard and in a way an unimaginable thing .
Outsourcing is basically an agreement where one company contracts out its internal activity(here transportation) to other company .
BENEFITS OF PRIVATE FLEE:-
1. to provide better services to customer
2.to be able to control their own destiny
3.less hassel than delaings with hire-cariers/outsoucers
4.convinience, less transport time,reduced damage to products, flexibility and much more...
COMPROMISES OF PRIVATE FLEE:-
it will be an added burden to the owner of the business as in outsouring he just needs to come into an agreement all the work is done by the outsourcing company .
if in case there is damage or theft of the cargo then the owner of the business is reponsible for the loss , this is not the case in outsourcing as he is liable for such losses
it depends upon the place where you live , the laws government has for transportation purposes of businesses. if the cost of transportation is low then the business will prosper . It all depends upon Traffic rates , airfares , railroads , which are the ways for transportation of good and products. If these are lower then the means to do business is good and it will earn profit otherwise the cost will be high and the business won't incur profit and might ultimately go in loss if rates continue to be higher .