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TOPIC 3: Warehouse & Transportation

One way that manufacturers can reduce the price of a product is by decreasing the warehousing and transportation costs using the demand and inventory planning techniques discussed in Section 6.6 of the main text. This adds value to the customer.

Warehousing and transportation tends to be outsourced by most manufacturers so they don’t have to develop those core competencies. Sometimes the warehousing or transportation channel member becomes the channel leader.

Can you think of an example of a product for which the warehouse or the method of transportation is the channel leader? You might need to do a little web searching to find examples. Think creatively for both online delivery and physical delivery.