MGMT615 GDB No 01 Fall 2020 Solution / Discussion
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|Starting Date||Tuesday, November 24, 2020|
|Closing Date||Monday, November 30, 2020|
|Question Title||GDB No. 01|
Transportation & Logistics Management (MGMT615)
GDB No. 01
Total Marks: 5
To reinforce the concept of decision making for third-party logistics in global operations.
Consider, USA based XYZ firm is one of the growing FMCG companies engaged in beverages. The battle for survival in tough competition compelled the company to expand its operations to South Asia. Thus, the company decided to introduce its products (manufactured in the USA) in Pakistan and India. To retain control over supply chain, specifically logistics, has always been a desire of such companies. However, changing market structure, increasing competition, increasing economic pressure and increasing regulations for operating globally restrict such companies to expand aggressively. For this, the company is undecided between two choices for logistics: either hire third-party logistics services (3PL) or manage its own logistics operations – as both have certain pros and cons.
Eyeing critically on the above the mentioned trade-off, you are required to discuss if the company would perform better with third-party logistics services or it can get more in managing its own logistics operations? Justify your answer with reasons.