Module 2 Marketing Research SLP: Product Distribution

Distribution
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Ownership and Rationale
The most appropriate modes of transport are land relative to the level of flexibility and the fact that they are much cheaper as part of an ownership plan. Ideally with a fleet of trucks, the company is able to manage the element of transportation with ease. It is crucial that the company owns the transport docket such that they able to rely on a system that they in control of. In some of the case where the transport system is owned by another company is easy for them to have complications. This is relative to the level of reliability and flexibility that the company may have in play (Buzzell, & Ortmeyer, 1995). Ownership of the fleet is significantly less complex and allows the company to design and appropriately organize the different aspects of distribution ("Streamlining Distribution", 2017). It is quite complex, for the company to organize the elements of transportation where they do not have the full control of the fleet. This means that, the company is always dealing with the various tedious processes associated with working with another company that organizes what and where their fleet can be used. Where there increases in the level of demand, it is very difficult to adjust accordingly in time as in most of the cases the fleet company has to be involved in these decisions ("Fresh & Easy Streamlining Distribution Channels - Convenience Store Decisions", 2017). This makes simple processes of making decisions relative to the distribution needs very complex and sometime they take much more time than they should.
Strengths
The strengths of owning transportation mode is largely associated with the level of flexibility that is extended to the company. This is to mean that the company is in a position to manage the distribution needs with finality. Where the company makes a decision about certain distribution needs and adjusts the transport system to networks to handle the loads on the various channels. It is then very difficult for there to be complications associated with another party changing the dynamics of the same without the consent of the department in charge (Buzzell, & Ortmeyer, 1994). In the case of a system that is managed by another fleet company, it is very easy for the decisions on the distribution channels to be complicated by the number of persons that have to be consulted. This level of complication, adds to the challenges of distribution network and further strains the company’s ability to reach the customers.
Weaknesses
However, there is also the element of weaknesses associated with the management of the transport system. the fact that, it is a system on its own also means that it requires massive resources to maintain. This means that the company has to devote considerable amount of resources. Where the company has delegated the transport services to another fleet company, the aspects of the management of the trucks and the logistical challenges are also delegated. This is to mean that, where challenges arise, in the fleet such repairs, the fleet company will have to make sure that the trucks offered are in mint conditions. However, if the company is dealing with them, this will mean significant lo...