- Choose a major manufacturer and a major retailer and describe two types of warehousing each might use and why they use it.

- Compare the advantages and disadvantages of ownership of logistic assets.

- What factors should be considered when deciding whether to own or outsource the assets needed to execute the logistics function?

Please answer all & use American based companies, not including General Motors or Walmart.

Across the globe, Amazon has more than 175 operating fulfilment centres and more than 150 million square feet of space where employees pick, pack, and ship Amazon customer orders to the tune of millions of items per year. 

• Sortable: Sortable fulfilment centres, around 800,000 square feet in size, can employ more than 1,500 full-time associates. In these buildings, Amazon associates pick, pack, and ship customer orders such as books, toys and housewares and many work alongside Amazon Robotics, learning new skills and helping create a more efficient process to meet customer demand. 
• Sortable: Sortable fulfilment centres, around 800,000 square feet in size, can employ more than 1,500 full-time associates. In these buildings, Amazon associates pick, pack, and ship customer orders such as books, toys and housewares and many work alongside Amazon Robotics, learning new skills and helping create a more efficient process to meet customer demand. 

These are the advantages and disadvantages of ownership of logistic assets:

Hard Costs of Procurement

• Since they own some or all of the physical assets necessary to handle supply chain management, you can hire an asset based company to completely take care of your supply chain. Because of this ownership, asset based logistics providers sometimes offer a lower cost on warehousing and transportation as they set their own pricing and are not paying a third party, such as a carrier or warehouse.

If the non asset based third part logistics (3PL) is not savvy, doesn't have a large trusted network, or simply doesn't have the buying power, when it comes to procurement of parts of logistics such as warehousing and transportation, they may not be able to provide cost effective solutions.

Customization and Flexibility

• When it comes to a custom solution for your supply chain needs, an asset based 3PL will have difficulty if they own their own warehouses or trucks. There is potential that an asset based logistics provider will simply create your logistics strategy to fit into their complete system.

Hiring non asset based third party logistics companies ultimately means hiring expertise, not hardware. By analyzing individual supply chain needs, a non-asset based 3PL can evaluate how a company's supply chain is working and how it can be improved. Non asset based 3PLs can work with companies to identify the best approach to meet the demands of their industry and customers. By designing a supply chain that fits a company's specific needs, non-asset based 3PLs can apply their flexibility that allows them to respond to clients' needs on a case-by-case basis.

Further, many companies have made heavy investments in their own supply chain infrastructure. By using a non-asset based logistics provider, companies can continue to realize value from these capital investments while providing the most efficient means of delivering service.

Stability and Financial Solvency

• Some view asset based third party logistics companies, in general, as more stable than the non asset based logistics providers. Some say this, stating asset based 3PLs represent stability because they have invested in the long-term operation of their company. Furthermore, some say owning real estate, such as a warehouse, decreases the fear of relying on other's leases terminating thus leaving the customer out to dry. 

Conflicts of Interest

• A non asset based 3PL is free from vested interests that can sometimes influence an asset based 3PL. For example, when it comes to freight claims management, a non-asset 3PL can also avoid any bias when acting to protect you in case of a claim for damages as it is in the best interest of the non asset 3PL to get the highest payment for your claim, offering clear and open communication.

Furthermore, when it comes to freight invoices, it's to the advantage for a non asset 3PL as they are going to work on your behalf to uncover unexpected variances between your quote and invoice.

Conversely, since non asset based third party logistics companies outsource responsibilities to other companies, there are more hands involved in storing and moving goods. With less control over the logistics by one company, there may be more opportunities for errors.

Step-by-step explanation

Storage is the main reason why a warehouse is needed. Surplus and excess goods which are not required on an immediate basis need a warehouse. Warehouses are useful to stabilise prices. They create a time utility so that prices can be managed when supply is high and low. The way warehouses are made ensure that there is not much risk to the products or goods by way of fire or theft or water and others.  

A company who is looking to outsource logistics to a provider, regardless of asset or non-asset, the best chance at providing the most value for a company is to choose the one that meets the needs, offers solutions, expert and reliable customer service, and ultimately choose the provider that will serve  in the long-term with the ability to scale as growing and expanding business.