Marketing 300 Exam 5 Study Guide

On specialization efficiency and scale economies

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Unformatted text preview: range of special (customized) services • There are 2 logistics service providers: o Transportation spets §༊ Thousands of carriers §༊ Comprehensive carrier network provides broad assortment of services, utilizing all forms/modes of transportation and related technology §༊ Value proposition based on specialization, efficiency, and scale economies §༊ Value generated by carrier’s capability to provide shared transportation for multiple shippers o Warehousing spets §༊ Also known as public warehouses §༊ Provide product storage supplemented with other specialized services §༊ There are 2 significant benefits for shippers: elimination of capital investment in warehouse building and the ability to consolidate small shipments for combined delivery with products of firms using same public warehouse §༊ Many firms provide private and public warehouses into go- to- market distribution network • Classifications of ISPs: o Third- party logistics service providers: asset- based firms that own and operate transportation equipment and warehousing buildings o Fourth- party logistics service providers: non- asset- based firms that provide comprehensive information servi...
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