The purpose of this assignment is to explore outsourcing opportunities in order to propose the use of a third-party logistics (3PL) solution. Begin by reading “Case 12.2 – HQ Depot,” in 250-500 words,

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The purpose of this assignment is to explore outsourcing opportunities in order to propose the use of a third-party logistics (3PL) solution.

Begin by reading “Case 12.2 – HQ Depot,” in 250-500 words, answer the “Case Questions” for “Case 12.2 – HQ Depot.”

For Case Question 2, use Knight Transportation as the basis for your response (website link provided https://www.knighttrans.com/). Consider the following  additional questions when answering Case Question 2.

  1. What models does Knight Transportation have?
  2. Which model best fits HQ Depot’s needs?

The purpose of this assignment is to explore outsourcing opportunities in order to propose the use of a third-party logistics (3PL) solution. Begin by reading “Case 12.2 – HQ Depot,” in 250-500 words,
1399230 – C en gage L ea rn in g © A lig ni ng Alig ni ng Suppl y S uppl y C hai ns Chai ns 505505 C ASE C ASE 12.21 2.2 H Q H Q D ep otDep ot JJ un e, un e, JJ ulyu ly , , aa n d n d AA ugu st u gu st aa r e re u nun usu ally u su ally cc h allen gin g h allen gin g mm o non th s th s ff o r o r HH Q Q DD ep ot, ep ot, ww h en hen tt his h is C hic a g o -b ased Chic a g o -b ased ret ailer ret ailer ex per ien ces ex per ien ces sig nsig n ca nca n t t d em an d dem an d fofo r r it s it s pp ro d ucts ro d ucts in in res ponres pon se se to to th e th e ii a n nan n ual u al oo p en in g p en in g oo f f ss c h ools c h ools aa n d n d unun iv eriv er sit ies sit ies in in tt he he mm on th s o n th s oo f f A ugu st A ugu st aa n d n d SS ep tem berep tem ber . . HH Q Q dep ot d ep ot ii s s aa n n oo m ni- c h anm ni- c h an n el nel rr et ailer etailer oo f f a a bb ro ad ro ad rara n ge n ge oo f f oo c e ce ss u ppli es uppli es aa nd n d bb ack -to -s c h ool a ck -to -s c h ool  i t emit em s s su ch su ch as a s c o mco m p uter s, p uter s, pp r in ter s, r in ter s, aa n d n d acces so ries , a cces so ries , i n in ad dit ioa d dit io n n to to m orm or e e tr a d it io n al t r a d it io n al iit em s tem s su ch su ch aa s s nn o teb oooteb oo li n g li n g ffo ld er s, o ld er s, ww r it in g rit in g imim p lem enplem en ts , t s , etet c . c . MM o st o st oo f f thth e e SS K U ’KU ’ s s aa v aila bv aila b le le aa t t HH Q Q ks, k s,  D ep ot D ep ot aa r e re imim pp o rted orted ff roro m m a a nn u m ber um ber oo f f ee m ergin g m ergin g aa n d n d dd ee vel ovel o ped ped mm ark et s, a rk et s, ss u ch uch aa s s CC h in a, h in a, I n dia , I n dia , VV i et nam , i et nam , P hiliP hili p pin es , p pin es , aa n d n d M exiMexi co .co . G iv en Giv en tt he he vv erer y y pp ric e- co m pet it iv e ric e- co m pet it iv e mm ark et ark et in in ww hic h hic h HH Q Q dd epep ot o t oo p er ates , p er ates , mm o sos t t oo f f tt h es e hes e im ported im ported pp ro d ucts ro d ucts aa re re ss h ip ped hip ped by b y cc o non tt ain erain er sh ip s sh ip s tt o o UU .S . .S . ww es t es t cc o ast o ast pp o rts , o rts , a n d an d tt hen hen tt ra n sra n s — ported ported to to d is tr ib u tiod is tr ib u tio n n cen terc en ter s s in in C hic a g oC hic a g o , , I L , I L , H enHen der so n , d er so n , N VNV , , a nan d d G reenG reen v ille, ville, SC SC via v ia in terin ter — m od al m od al aa n d n d oo verver -th e- ro ad -th e- ro ad tt ru ck lo ad ru ck lo ad cc arrier s. a rrier s. MM o st o st ff r eq uen tlyr eq uen tly , , ss h iph ip m en ts m en ts ff ro m ro m tt hes e hes e DD C’C’ s s to to in div idin div id u al u al s to res , s to res , aa n d n d to to h oho m e me an d an d bu sbu s in es s in es s a d dresa d dres ses ses fo r fo r e- Com mere-Com mer ce ce cu sto m ers, c u sto m ers, ww er eere fufu llelle d d tt hro u gh hro u gh a a cc o m bom b in atioin atio n n oo f f tt r u ck lo ad , r u ck lo ad , LL T L, T L, aa n d n d ee xp rxp r es s es s ss erer v ic es vic es (p(p a rtic u lartic u l arla rl y y ff o r o r ll t im e-sen sit iv e tim e-sen sit iv e dd el iv er ies ).el iv er ies ). H Q H Q DD ep ot ep ot w awa s s mm a n ag in g an ag in g ii ts ts tt ra n sp orta tio n ra n sp orta tio n oo per atio n s p er atio n s inin t er nalter nal lyly , , bb u t u t tt h e he cc omom p an y p an y d ec id ed dec id ed ii t t w awa ntnt ed ed tt o o ff ococ u s u s oo n n ii ts ts cc o re o re cc o m pet en cyo m pet en cy , , ww h ic h , h ic h , aa c co rd inc co rd in g g tt o o ii ts ts S V P SV P SS uppupp ly ly C hain , C hain , w awa s s ““ m ainm ain t a in in g ta in in g oo u r u r ll ee a d er sh iad er sh i p p in in tt hh e e oo ce ce aa n d n d ss ch ool c h ool ss u ppluppl y y inin d ustrd ustr yy ..” ” ἀἀ e e  c o mco m p an y p an y aa ls o ls o w awa ntnt ed ed tt o o cc en tr a li z e en tr a li z e ii ts ts tt ra n sra n s porta tio n porta tio n oo per atio n s. p er atio n s. LL oo o kin g o kin g cc aref ully aref ully aa t t tt h e he is su e is su e of o f o ver all o ver all p er fo rm an ce p er fo rm an ce in in tt he he lo gis tic s lo gis tic s a n d an d tr a n str a n s porta tio n porta tio n arar ea s, ea s, a a sig nsig n ca n t c a n t a m ou n t a m ou n t ii o f o f v aria bv aria b ili t y ili t y w as w as fo u nfo u n d d in in th e th e tr a n sit tr a n sit tim es tim es an d an d serser v ic e v ic e rel ia brel ia b ili t y ili t y o f o f it s it s sto re sto re a n d an d cu sto m er cu sto m er del iv er ies . d el iv er ies . ἀἀ u s u s th e th e id ea id ea oo f f c en tr a li z in g cen tr a li z in g it s it s lolo g is tic s g is tic s o p er atio nop er atio n s s w as w as c o n sis tc o n sis t en t en t in in th e th e purpur su its u it o f o f u n if ou n if o r m it y rm it y an d an d coco n tr on tr o l l i n in it s it s fufu llm en t llm en t o p er aop er a tio n s.tio n s. ll AA d dit io n allyd dit io n ally , , H Q H Q DD ep ot ep ot hh a d ad set set an an objec tiv e o bjec tiv e oo f f imim p rop ro v in g vin g serser v ic e v ic e to to so m e so m e oo f f ii ts ts oo u tlyu tly — i n g in g stos to r es res anan d d cu sto m er cu sto m er m ama rk et s, r k et s, w hic h w hic h clea rclea r ly ly w ou ld w ou ld rr eq uir e eq uir e ex pan sex pan s io n io n of o f iits ts lo gis tic s lo gis tic s n et work . n et work . AA c co rd in g cco rd in g tt o o HH Q Q Dep otD ep ot ’’s s V P V P LL ogog is tic s, i s tic s, a n an aa naly sis n aly sis hh a d ad beg un beg un to to stst u dy u dy hh o w ow llon g o n g iit t w ou ld w ou ld tt ak e ak e anan d d w hat w hat it it w ou ld w ou ld co st c o st to to bu ild bu ild up up th e th e co m panco m pan y’y’ s s tr a n sp orta tio n tr a n sp orta tio n ca p ab ili t ies ca p ab ili t ies toto b e be ab le a b le t o to susu p port p port s u ch su ch a a n et wonet wo rk . r k . A s A s a a kk ey ey elemelem en t en t o f o f th is th is pp ro ces s, r o ces s, a a rr ec om men daec om men da tio n tio n w asw as b ei ng b ei ng co n sid eco n sid e red red to to uu sin g sin g a a 3 P3P L L prop ro v id er vid er to to d es ig n des ig n an d an d op er ato p er at e e a a ss ystem ystem to to bet ter bet ter m an agm an ag ee th e th e tr a n sp orta tiot r a n sp orta tio n n of o f p rpr od ucts o d ucts fr o m fr o m DC’D C’ s s to to lolo c aca tio n s tio n s o f o f c o m panco m pan y y sto res sto res an d an d e- Com mercee- Com merce cu sto m ers.c u sto m ers.In In aa ddit io n , d dit io n , HH Q Q Dep ot D ep ot w an ted wan ted tt o o be be ab le a b le tt o o rea ch rea ch mm arka rk et s et s fo r fo r ww h ic h hic h it it d idi d d nn ot o t a lr ea dalr ea d y y h avh av e e aa cces s, c ces s, ww h ic h hic h ww ou ld ou ld rr ee qu irq u ir e e ee x p an sio n xp an sio n oo f f iits ts lo gis tic s lo gis tic s n et wnet w ork . o rk . AA c ccc o ror d in g d in g tto o th e th e dird ir ecec — t o r to r oo f f lo gis tic s, l o gis tic s, a n an an aly san aly s isis w as w as u n der ta k en un der ta k en to to stu dy stu dy h ow how lo nlo n g g it it w owo uld uld ta k e ta k e an d an d w hat w hat iit t w ou ld w ou ld cc ost o st to to bu ild bu ild up up H Q H Q Dep ot’D ep ot’ s s tr a n sp orta tio n tr a n sp orta tio n cc aa pab ili t ies pab ili t ies to to bb e e ab le a b le t o to su pposu ppo rt r t s u ch su ch a a n et work . n et work . A s A s a a resres u lt , u lt , a a rec om menrec om men datio n datio n w as w as m ad e m ad e to to ser io u sly ser io u sly inin v es tig aves tig a te te th e th e use u se o f o f a a 3 P L3P L pr opro vv id erid er .. CopCop yr ig ht yr ig ht 2017 2017 C en gC en g ag e ag e L earn in g. L earn in g. A ll A ll R ig hts R ig hts R ese rvR ese rv e d . e d . M ay M ay n ot not be be copi ed , copi ed , sc an ned , sc an ned , or or dupl ic ate d , dupl ic ate d , in in w hol e w hol e or or in in pa rt. pa rt. D ue Due to to e le ctr on ic e le ctr on ic rig hts , rig hts , som e som e th ir d th ir d pa rty pa rty c on te n t c on te n t m ay m ay be be suppr esse d suppr esse d from from th e th e eB ook eB ook an d/or an d/or eC hapt er(s ).e C hapt er(s ). E ditor ia l E ditor ia l r ere vi evie w w has h as d eem ed deem ed th at th at a nan y y suppr esse d suppr esse d con te n t c on te n t d oe s d oe s n ot not m ate ria lly m ate ria lly a faf fe ct f e ct th e th e oovvera ll e ra ll le arn in g le arn in g eexpe rie n ce . xpe rie n ce . C en gC en g ag e ag e L earn in g L earn in g re se rvre se rv e s e s th e th e rig ht r ig ht to to r e m ore m o vve e ad diti on al a d diti on al c on te n t c on te n t a t a t a nan y y ti m e ti m e if if s ubs eq ue nt s ubs eq ue nt r ig hts rig hts re str ic ti on s re str ic ti on s re q ui re re q ui re it.i t. 1399230 – C en gage L ea rn in g © 5 06 506 Chapt er C hapt er 1 212 C ASE C ASE Q UESTIO N SQUESTIO N S 1. 1 . W hat W hat r ara tt io n ale i o n ale i s is oo  er ed ered by b y H Q H Q Dep ot D ep ot in in susu p port p port o f o f th e th e id ea id ea of o f u sus in g in g a a 3 P L? 3 P L? D o D o yo uyo u ag ree a g ree w it h w it h th e th e rea so nrea so n s s c it ed cit ed fofo r r th e th e in terin ter es t es t in in a a 3 P L?3P L? 2. 2 . B asB as ed ed on on yoyo u r u r u n der sta n dinu n der sta n din g g o f o f H Q H Q Dep ot D ep ot a nan d d it s it s b u sin ebu sin e ss ss n eed s, n eed s, w hat w hat ty p e ty p e of o f 3 P L3P L rr m m do d o yo u yo u feel feel mig hm ig h t t bb e e o f o f g reag rea tes t tes t p otenp oten titi a l a l v alu e valu e in in ter m s ter m s oo f f a a rel arel a tio n sh itio n sh i p?p? 3. 3 . W hat W hat ss tep s tep s w ou ld w ou ld yoyo u u su gges t s u gges t b e be co n sid eco n sid e red red by b y HH Q Q Dep ot D ep ot a s a s it it b eg in s b eg in s to to an aly ze a n aly ze th eth e fea sib ilif ea sib ili t y ty o f o f fofo r m in g rm in g a a rel arel a tio n sh itio n sh i p p w it h w it h in div id ual i n div id ual 3 P L 3P L prpr ovid er s?o vid er s? 4 . 4 . O nce O nce th e th e sel ecsel ec tio n tio n pp ro ces s ro ces s is is c o mco m p let e, plet e, w hat w hat k in d kin d of o f rr el atio n sh iel atio n sh i p p do d o yo u yo u feel feel ww ou ldo u ld b e be m ost m ost a pap p rop ro p ria tp ria t e: e: ven dorven dor , , p arp ar tn ertn er , , s tr astr a teg ic teg ic a lli a n ce, alli a n ce, or o r so m e so m e oo th er th er op tioo p tio n ?n? Sou rce: Sou rce: Cop yrig ht, C op yrig ht, C . C . J oh n Joh n Lan gley Lan gley JrJr ., ., P h.D ., P h.D ., P en n P en n Stat e Stat e Univ er sit yU niv er sit y . . U sed Used wit h w it h p er mis sion .per mis sion . CopCop yr ig ht yr ig ht 2017 2017 C en gC en g ag e ag e L earn in g. L earn in g. A ll A ll R ig hts R ig hts R ese rvR ese rv e d . e d . M ay M ay n ot not be be copi ed , copi ed , sc an ned , sc an ned , or or dupl ic ate d , dupl ic ate d , in in w hol e w hol e or or in in pa rt. pa rt. D ue Due to to e le ctr on ic e le ctr on ic rig hts , rig hts , som e som e th ir d th ir d pa rty pa rty c on te n t c on te n t m ay m ay be be suppr esse d suppr esse d from from th e th e eB ook eB ook an d/or an d/or eC hapt er(s ).e C hapt er(s ). E ditor ia l E ditor ia l r ere vi evie w w has h as d eem ed deem ed th at th at a nan y y suppr esse d suppr esse d con te n t c on te n t d oe s d oe s n ot not m ate ria lly m ate ria lly a faf fe ct f e ct th e th e oovvera ll e ra ll le arn in g le arn in g eexpe rie n ce . xpe rie n ce . C en gC en g ag e ag e L earn in g L earn in g re se rvre se rv e s e s th e th e rig ht r ig ht to to r e m ore m o vve e ad diti on al a d diti on al c on te n t c on te n t a t a t a nan y y ti m e ti m e if if s ubs eq ue nt s ubs eq ue nt r ig hts rig hts re str ic ti on s re str ic ti on s re q ui re re q ui re it.i t.

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