REVIEW FOR DISTRIBUTION MANAGEMENT

1. The use of a third party company can provide the user company with access to _____. This may be through the opportunity to use leading edge technology such as RFID (Radio Frequency Identification), track and trace, GIS (Geographic Information Systems), or by providing a broader management experience and knowledge beyond that of their own industry.

• wider knowledge
• lack the appropriate experience
• cultural incompatibility
• contractor/client relationship
• over the delivery operation

2. Third party distribution companies may _____ of client companies’ products and markets, although the growth in specialist distribution companies has helped to change this point of view.

• wider knowledge
• lack the appropriate experience
• cultural incompatibility
• contractor/client relationship
• over the delivery operation

3. There may be an issue with _____between contractor and client. It is now recognized that company cultures can vary quite dramatically from one to another.

• wider knowledge
• lack the appropriate experience
• cultural incompatibility
• contractor/client relationship
• over the delivery operation

4. It is important that there is no clash of culture in a _____ because this may lead to problems in the way the operation is run.

• wider knowledge
• lack the appropriate experience
• cultural incompatibility
• contractor/client relationship
• over the delivery operation

5. It is claimed that the use of third party distribution can lead to a loss of control _____. This may be important if logistics is seen as a major element of competitive advantage.

• wider knowledge
• lack the appropriate experience
• cultural incompatibility
• contractor/client relationship
• over the delivery operation

6. Any Lack of (a)   can be reduced, however, by buying the right service at the outset, and by carefully monitoring the performance of the distribution company in terms of the service that it is actually providing.CAPITAL LETTER

7. There may also be a _____ if a third party is used. This means that the company is no longer in a position to define the number, type or size of distribution centres, or vehicle types and sizes.

• lack of control
• loss of control over the company’s logistical variables
• contractor
• loss of distribution and logistics expertise
• loss of direct influence at the point of delivery

8. Once again, if this is important, the company must choose the third party structure that suits it the best. Also of concern is the fact that as the contractor owns the systems and logistics resources the balance of power has shifted away from the user to the (a)  

11. Brand (a)   cannot be guaranteed. Not an issue for many companies, but one that is quoted by some.

What is the primary purpose of the Request for Proposal (RFP)?

• a) To increase competition among contractors
• b) To facilitate an objective comparison of vendor proposals
• c) To reduce the cost of operations
• d) To eliminate the need for negotiations