From your experience and by conducting research online and/or in person and expl
ID: 424336 • Letter: F
Question
From your experience and by conducting research online and/or in person and explain why an organization should outsource their transportation activities. Provide an example of an organization within Jacksonville, FL who is currently contracting out their transportation services. Explain why they are contracting out these services and mention the pros and cons if they decide to transport their good/services internally. From your experience and by conducting research online and/or in person and explain why an organization should outsource their transportation activities. Provide an example of an organization within Jacksonville, FL who is currently contracting out their transportation services. Explain why they are contracting out these services and mention the pros and cons if they decide to transport their good/services internally.Explanation / Answer
Outsourcing means process of hiring another company to handle the business activities or handling business activities to another company to reduce burden and improve work efficiency. It company outsourcing its transportation activities, it can more concentrate on its actual business process.
It can save time, money and resources of the organization.
When one company outsourcing transportation activities. We can see some benefits and losses
Advantages
It can useful to reduce work burden
It can improve customer service
It can useful to save time and money
It helpful to improve work efficiency
Disadvantages
It can give losses, if we choose inefficient third-party logistics company
It will not benefit if outsourcing company charge more
If company handle transportation activities by its own
Advantages
Company maintain complete control on all aspects of its operations
Company can directly maintain relationship with customers and can get customers loyalty
Disadvantages
It difficult to handle all operations
Company may not concentrate on its main areas
It can reduce competitive advantage of the organization
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