Discussion 4: Grocery Gateway Actions for Discussion 4: Grocery Gateway Think ab
ID: 405644 • Letter: D
Question
Discussion 4: Grocery Gateway Actions for Discussion 4: Grocery Gateway Think about the seemingly intractable transportation problems facing Grocery Gateway. Utilize the data provided in the case study, determine the benefits and possible additional costs that Grocery Gateway would face in their attempt to increase the delivery efficiency under three different scenarios: a) keeping each truck on its route longer, b) changing delivery times along routes, c) increasing delivery fees for customers. Which option would you select?
Explanation / Answer
Ans:- For Grocery Gateway, increasing delivery fees for customers will be the best option.
According to me, increasing delivery fees for customers is the best option because,
High transportation costs are driving three main shifts in supply chain strategies. These changes are having a beneficial impact not just on transportation budgets but also on broader supply chain and financial performance.
A conjunction of factors and economic developments lies behind rising transportation costs. At the center of today's transport challenges are oil prices. Freight movement in most modes remains largely dependent on ever-more expensive and finite fossil fuels, primarily diesel fuel. According to the U.S. Energy Information Administration, the price of crude oil is the dominant factor influencing changes in diesel prices.
An equally influential factor in transportation costs, the demand-supply imbalance of freight transport services, is a repercussion of trade growth that has outpaced the availability of transport services to such an extent that it has led to serious issues of congestion and capacity constraint in the United States. The remarkable growth in U.S. international trade in the last 10 years has resulted in rapid growth of traffic volumes throughout the nation's transport system. This is likely to get worse in the coming decades. Despite a significant drop in total freight volume during the depths of the 2008-2010 recession, economic conditions are improving, and it is projected that freight volume will grow 68 percent by 2040, with particularly strong growth in international freight.
So increasing delivery fees for customers helps lot to Grocery Gateway