Herne Organics will also have a distribution pattern that is determined by the proximity of the respective clients. Shifts for deliveries will be organised around this concept. Lastly, a lot of support will be needed in terms of the trained drivers, efficient mechanics and experience in supply chain management.
The latter essay is an examination of the transport options available to a company that specializes in organic vegetables and salads. This business was initially a small one, however, following re-investment and expansion in the sector, the company now focuses on production of organic products. There is a need to look at some of the avenues available to the company in terms of vehicle fleet management. Additionally, financial and operational challenges will be examined with strict adherence to the UK vehicle and operator serve agency's rules and regulations.
Herne Organics has the option of either outsourcing or owning their fleet of vehicles for transportation. If the company chooses to outsource this business function, then it stands to benefit from the great experience that the transporting company will have. Since such experts have worked with so many other businesses, then they are likely to develop solutions that are well suited to this company. (Emp, 2007)
If the company chooses to own its f...
Outsourcing also, transfers some of the risks that arise out of owning one's fleet. This is usually because of the need to maintain an operational lease. Additionally, vehicles require a lot of maintenance and this eats onto the company's profits. By outsourcing, the company can eradicate this issue.
If the company opts to own its fleet of vehicles, it would have greater control over their transportation functions. Many external companies may impose undue rules on the number of times that the vehicles may be utilized or the period of duration of the contract. However, all these problems are eradicated whenever a company opts to handle its own transportation problems.
It should also be noted that choosing to outsource the transport function could create a scenario in which there are communication barriers between Kent Limited and the company offering the outsourcing service. If Kent Limited fails to do adequate research about this option, then they may get a company that makes independent decisions without consulting them and this may cause a lot of friction between the two parties. (Fisher, 2004)
However, outsourcing the transport function can also go a long way in reducing certain miscellaneous activities. For instance, drivers will have to be trained by the transport provider rather than by Herne Organics. Also, the company can be spared from insurance costs that come with owning a fleet of vehicles and they can also minimize the risk of getting into accidents since drivers will be well trained and prepared for the tasks that lay ahead of them.
There are a number of dynamics that are going on in the vehicle business environment today that could place Kent at increased risk if they own their own fleet of vehicles. For instance, they may want to resell