Case Study: Why Did US Postal Service Want To Enter The Third-Party Logistics Market
1. Why did US Postal Service want to enter the third-party logistics market? The US Postal Service wanted to enter the third-party logistics market as a response to competitors activities, whether or not valued was added it did not want to risk the reduction of value based on their position (Maital & Seshadri, 2012).
2. What were the three options available for entering this market? What were the advantages and disadvantages of each?
1) The first option that the US Postal Service arrived at was the build option which “create third-party capabilities from within the Postal Service and make it a new line of service offering, similar to that of UPS and FedEx” (Maital & Seshadri, 2012, p. 504).
a) Advantages would be seen in better service, better
…show more content…
Moreover including the substantial involvement of various types of capital such as dollar, legal, and political (Maital & Seshadri, 2012). With a traditional cost analysis there was no positive cash flow until three years into the operation of this venture (Maital & Seshadri, 2012). This is seen as a disadvantage based on the company’s measure, from the marketing department, of when positive cash flow had to occur for a new service venture (Maital & Seshadri, 2012). Even the options to reduce the cost of this venture was considered a loss when it came to the “total distribution flexibility for the customer” (Maital & Seshadri, 2012, p. 505). Especially in contrast with the fact that the US Postal Services competitors current build installments were already better than their cost reduction option for …show more content…
Subsequently highlighting the overall benefits and reasoning to US Postal Service’s abrupt (in terms of the case study) choice to go with the partnering strategy for their third-party logistics delivery service venture (Maital & Seshadri, 2012). Additionally developing a competency curve over a learning curve is more ideal in attracting a third-party logistics firm to partner with then one that was stuck on a learning curve (Maital & Seshadri, 2012).
4. How did the Postal Service go about finding an appropriate partner? The approach that the US Postal Service took to go about finding an appropriate partner was similar to that of research methods. They cast a wide net to twenty of the major third-party logistics firms within their industry with a detailed letter of intent. They then narrowed it done to the five best matched companies that met US Postal Services needs followed the work of a team of professionals that carried onsite visits and in-depth interviews (Maital & Seshadri, 2012). The US Postal Service then picked a partner after a five month period of these assessments and deliberations (Maital & Seshadri, 2012).
5. What financial analysis was carried out to compare the three
Rhetorical Analysis Of Ups And The Package Wars By Jennifer Gonnerman
1121 Words | 5 PagesEmma Taylor English 1010 Mrs. Ralison B7 UPS and the Package Wars: Use of Rhetorical Elements The way authors choose to phrase their words can have a significant and long lasting impact both on writing, and how audiences will receive an overall message. This is a concept that Jennifer Gonnerman certainly did not overlook when she was writing the article "UPS and the Package Wars" Throughout the duration of this essay, the article will be summarized, and then Jennifer Gonnerman's choices will be discussed as they relate to the decisions she makes with her words. It's clear that the author's word choice is effective, specific, and relevant to the text as far as the audience, purpose, stance, context, genre, and medium are concerned.
Turnaround Courier Inc Case Study
839 Words | 4 PagesSummary of the Facts In TurnAround Couriers Inc. v. C.U.P.W. (2012), TurnAround Couriers Inc. is the Applicant, and The Canadian Union of Postal Workers is the Respondent. This case comment refers to a Federal Tribunal’s jurisdictional ability to hear a labour dispute concerning a courier company. TurnAround Couriers Inc. (“TurnAround”) is a Toronto-based “same-day” courier service that was established in 2002 and operated as a for-profit corporation. TurnAround’s primary business transactions included courier delivery by foot, bicycle and subway. Car delivery was also available but was outsourced through a separate company.
Moreno Valley World Logistics Center Case Study
210 Words | 1 PagesEven though the Moreno Valley World Logistics Center can bring harmful elements to the city, it will positively affect the community by generating jobs, tax revenue, and city growth. The Moreno Valley World Logistics center is such a great opportunity for all of Moreno Valley’s citizens. With facilities on this expansion of land, there is an estimated 20,000 jobs available within the center. The jobs range from pretty basic and minimum paying jobs like packing boxes to a robotics programmer. So yes, although there are some low level jobs about there are also jobs that require a good amount of intellectual knowledge that will pay fair.
Five Forces Analysis Of UPS
1297 Words | 6 PagesYet, with the recent proposed merger between FedEx and TNT Express, currently the third and fourth largest player, its market position may slide to the third in the market, according to the prediction of Reuters. The merger of FedEx and TNT would not only provide them with a greater client reach, but also more capacity for strategic pricing and united marketing effort in the light to make more attractive offerings and build a stronger brand. In addition, as the two have their transportation networks combined, it may prompt an improvement in their efficiency of leveraging distribution channels and hence a save in capital for further development. If that should apply, it would undoubtedly intensify the competition that UPS faces and threatens its market share. 4.2.
5.3 Explain The Need For Different Types Of Mail Services Used In Business Organisations
662 Words | 3 PagesExplain the need for different types of mail services Mail services could include postal services such as Royal Mail, and an organisation having their own internal system or the use of a courier company. 5.3. Explain the factors to be considered when selecting mail
Synthesis Essay On The Postal Service
439 Words | 2 PagesUSPS Synthesis Essay The U.S. Postal Service has been around for quite some time. They compete with other companies such as UPS or Fedex as they are all known as the most popular postal services. Over time, society has changed due to the technology influences. With the influences, the U.S. Postal Services have encountered a total mail volume decreasing and a loss in revenue.
Supply Chain Analysis Of Publix
143 Words | 1 PagesPublix is known as a retail or merchandising industry. Publix is known as one of the most productive food merchant in America. Admirably well tell, Publix is the most beneficial basic supply chain in the country: Its net edges, 5.6% in 2012, beat out Wal-Mart, Kroger, and Whole Foods. Publix has become the seventh-biggest privately owned business in the U.S. with over $28 billion in sales.
Ace Fertilizer Case Study
1118 Words | 5 PagesAbby prefers to allocate indirect cost using activity-based costing for these orders, but recognizes that not all costs are driven by volume of output. Abby prepares a
The United States Postal Service Essay
606 Words | 3 Pages“But the fact is, Mr.Chairman, for all the challenges the Postal Service of the 21st century faces, it still retains its traditional place as a key cog in how American business conduct their affairs and how Americans all across the land communicate. ”-John M.McHough. What McHough is saying is that even if the USPS has challenges to the new times, it is still vital for Americans to communicate with each other via mail. The United States Postal Service (USPS) is to be eradicated if it fails to meet modern needs. The USPS in recent years has seen a sharp decline for numerous reasons such as the use of the internet for email, the lack of funds to pay employees and for offices.
Alice Inc Case Study Solution
1145 Words | 5 PagesAs you can see in Appendix 1 our analysis revealed that according to new cost accounting system the profitability of Regular model is about 90% whereas profits from selling Deluxe model is about 10%. In the meantime production costs of Regular model is about 45% and Deluxe model is 55%. Thus we may conclude that for Alice, Inc. it is not profitable to produce Deluxe model comparing to Regular model, as costs for production of Deluxe model are higher but the profit is lower.
Johnson International Corporation: Case Analysis: Johnson International Corporation
800 Words | 4 PagesHere 70% of our business is done with military so in military terms logistics means the organization of moving, housing and supplying troops and equipment’s. No doubt logistics is an important activity as there is a process for doing a work and there must be proper coordination and cooperation. Lack of proper coordination means, high chance of getting errors in work. This case analysis focus on providing the recommendations to the top management to make sure their activities are going smoothly in the market and they can be ahead from their competitors in this competitive world. In easy words, the organization wants to improve their delivery to their customers.
The Importance Of The Postal Service
1168 Words | 5 PagesSociety has become busier as it innovates and discovers new enterprises. As communication becomes more accessible and effortless due to the use of technology, less people are relying on the United States Postal Service. In the past, the postal service has been essential to providing a role in expanding and connecting the United States. Due to their importance in the past, the Postal Service should be kept because they could again, serve an important role in this growing world. To ensure their existence, we must renovate the USPS to fit with modern principles.
Pizza Hut Supply Chain Analysis
2323 Words | 10 PagesIn addition to this the above strategies ensure that most of the goods are procured locally, a chain of local suppliers is formed which reduces the overall cost. A survey states that pizza hut procures 95% of its raw material locally hence, enhancing its relationship with various local suppliers, reducing the prices significantly and managing the supply risks and challenges. 2.2 Use Information Technology to create strategies to develop your chosen organization’s relationship with its suppliers. (Criteria 2.2: Use information technology to create strategies to develop an organization’s relationship with its
Porter's Five Forces Model Of Biscuits
1832 Words | 8 PagesPorter’s five forces model To analyse the microenvironment facing United Biscuits in China, Porter’s five forces model is selected to provide an understanding of the competitive forces, to determine the competitive position of the company and profitability within the biscuit industry whilst offering a framework for predicting and influencing competition over time (Porter, 2008, p.80). The findings are explained below: Threat of new entrants • The high capital cost required for investing in developing distribution, sales network and acquiring production equipment could deter new entrants. The barriers are high when capital is necessary for unrecoverable expenditures such as marketing and product development capability which is difficult for new entrants to succeed in the short-term (Euromonitor, 2014; Porter, 2008, p.81).
Pest Analysis Of Cold Chain Logistics
1076 Words | 5 PagesModern Stores The interviews were taken and the data were collected and we had also taken help from other articles from academic journals for an overview over the data. At the later step, we wanted to understand that what actually influence the performance of the Cold Chain Logistics. And regarding the elements which is able to manage the Cold Chain Logistics most effectively in a company.
More about Case Study: Why Did US Postal Service Want To Enter The Third-Party Logistics Market
Rhetorical Analysis Of Ups And The Package Wars By Jennifer Gonnerman
1121 Words | 5 PagesTurnaround Courier Inc Case Study
839 Words | 4 PagesMoreno Valley World Logistics Center Case Study
210 Words | 1 PagesFive Forces Analysis Of UPS
1297 Words | 6 Pages5.3 Explain The Need For Different Types Of Mail Services Used In Business Organisations
662 Words | 3 PagesSynthesis Essay On The Postal Service
439 Words | 2 PagesSupply Chain Analysis Of Publix
143 Words | 1 PagesAce Fertilizer Case Study
1118 Words | 5 PagesThe United States Postal Service Essay
606 Words | 3 PagesAlice Inc Case Study Solution
1145 Words | 5 PagesJohnson International Corporation: Case Analysis: Johnson International Corporation
800 Words | 4 PagesThe Importance Of The Postal Service
1168 Words | 5 PagesPizza Hut Supply Chain Analysis
2323 Words | 10 PagesPorter's Five Forces Model Of Biscuits
1832 Words | 8 PagesPest Analysis Of Cold Chain Logistics
1076 Words | 5 Pages