Due to the high level of outsourcing in Supply chain management, there is increased tendency of products being located in far regions from the consumers. Therefore, ample and efficient means must be employed to avail them to the consumers at the correct time and form when they in demand (Simchi-Levi et al, 2007). For large and heavy quantities that must be transported overseas, sea transport is the best while rail is most economical for such baggage on land. Other light products can be transported either by road or by air depending on the urgency and the target consumers.
Collaboration with line specific outlets in the major and line cities perfects and ensures that the goods are available to the consumers on the shelves (Lavassani, 2008). Having vertically integrated with them, they are able to to enjoy the competitive prices of the products in the market. Unrelated distributors in major depots for various towns assist to increase the total sales for the products at different times. Also, the chain supplies have been distributing their products and selling them in their own outlets where they have established mega shops for their products.
As an incentive and business promotion strategy, they remain as the only outlet for their products to lure customers into buying other products from their chains (Beamon, 998). This mode makes them assume the competitive advantage over their competitors who do not have the same products in their shelves. This process however, limits the total number of consumers accessing their products as it limit the overall country regional or international supply. It also gives the competitors an added advantage of marketing their products by availing them in larger quantities to the general public.
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(b). Third party logistics Third party logistics provision to the supply chain management are necessary as they ease the overall burden of holding major assets globally. Transport and ware houses are readily available for the supply chain management at varying scales depending on the quantity of the cargo to be held (Roberts, 2003). It assist in effecting international supples as they reduce the overall cost and time used to avail the products to the consumers globally.
Besides, they are able to offer specialized services to the chain supply requirements for handling weighing and even packing the products on special request (Ballou, 1999). Integrated containerized services and Specialized Container Management Systems ensure that the delivery of goods is perfected within the specified time and conditions. It is an effective method of effecting lean management processes which reduces the overall externalities that may rise from the transportation of finished products. (c) Cost of shipping alternatives
Bulk of the consumer products are transported using the sea due to their bulky nature that would make them unsuitable to transfer with other means like air. Due to the nature and geography of the areas for goods production all over the world, they require to be transported to the consumers who are located all over the globe (Lavassani, 2008). Beamon (1998) notes that, as a major method of overcoming the cost of transporting the goods and products by the sea, outsourcing by the supply chain management encourages establishment of industries in various regions where market accessibility is easier and cheaper.
It therefore cuts tremendously the final products prices for goods to the consumer and increases the overall profits to the company. Toyota motors have located major manufacturing factories in US for production of the hybrid cars that are greatly demanded in the region. As a result, the company managed to capture over 70% of the total share market for the hybrid cars in the year 2007 due to availability and reduced prices that the citizens were able to buy (Simchi-Levi et al, 2007).
Besides, local assembly has been a great option for different products where they are transported in small sections that are later assembled to give the finished product. Though this method still uses shipping, the quantity of transported products is high compared to transporting the finished assembled product, therefore greatly reducing the shipping cost (Ballou, 1999). This have been applied mostly in the electronics industry which are easy to transport and later assemble to get the finished product with ease.