Transportation: A Global Supply Chain Perspective
Transportation: A Global Supply Chain Perspective
9th Edition
ISBN: 9781337406642
Author: Robert A. Novack, Brian Gibson, Yoshinori Suzuki, John J. Coyle
Publisher: Cengage Learning
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Chapter 1, Problem 2.3C
Summary Introduction

Company T was founded in 2005 which operated as freight brokerage. Despite good profit, it couldn’t penetrate deep with its partners. So, the company decided to operate as third-party logistics with verticals as electronics, automotive and pharmaceuticals in Country U. Company T had partnership with Company S which is an assembler of high-end computer server and storage units. Company T acted as 3PL and 4PL for handing company S transportation and distribution needs. Company S was planning to expand to Country SA due to high labour cost in Country U. Country SA provided the advantage of low-cost labour, Country C is investing billions of dollars for infrastructure in Country SA and Country C was not selected for facility due to high labour rates. Company S had proposed Company T to expand to Country SA for providing their service but company T hadn’t operated outside Country U.

To determine: The recommendation for Company T to enter Country SA.

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