Saturn Corp.: Questions to Answer 1. Identify the primary issues related to the

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Saturn Corp.: Questions to Answer 1. Identify the primary issues related to the selection of outbound transportation providers and discuss their importance to each process stakeholder. What other factors and issues should the Vehicle Transportation Team consider in the selection process? 2. Starting with event 38, develop flowcharts of the delivery process for truck and rail Develop a second set of flowcharts that streamlines the delivery processes, removes redundant, unimportant activities and addresses concerns related to the current process? 3. Which delivery method would you recommend for each new retailer to minimize the outbound logistics costs per vehicle? 4. Which delivery method would you recommend for each new retailer to minimize transit time and transit consistency? 5. Assuming each new retailer will sell 720 vehicles annually, which delivery method would you recommend for each new retailer to minimize vehicle damage? What is your final recommendation (truck or rail delivery) for each new retailer? Why? Which stakeholder groups are likely to be most/least satisfied with your decision? 6. CSX has suggested that Saturn consolidate all deliveries for southeast Georgia and the east coast of Florida for once per week unit train delivery. The total outbound 7. cost would be $210 per vehicle and CSX guarantees a 3 day transit time. How would this affect Saturn's delivery methods to their retailers in Savannah, GA and Jacksonville, FL? 8. Burlington Northern Santa Fe Railroad has approached Saturn about using the Autostack system to deliver vehicles. Autostack is an intermodal delivery system in which six Saturns could be loaded in a 48 foot container at Spring Hill and delivered to destination rail yards via double stack intermodal service. The cars would be unloaded and delivered by drayage carriers. BNSF has offered 2 day transit time to Arlington, TX at a rate of $232 per vehicle. Loading costs of $13.50 and drayage costs of $12.50 would be incurred. How would this opportunity affect the delivery method recommendation for the Dallas, TX retailer?

Explanation / Answer

Answer 1:

Identification of primary issues related to the selection of outbound transportation providers :

These issues are critical from the stakeholder point of view, as the stakeholders will review each issues in detail because these are the issues which are going to impact the business to higher levels. Thus the pricing, cost, quality, network and service agreement are the key issues needs to be resolved in the service agreement for stakeholder interest.

Other factors should be considered are as below

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