Question $26$

$2$

Points

Scenario $14\mathrm{.}2$

Use the following scenario to answer the questions.

Global Industrial $($GI$)$ manufactures more than $1\mathrm{.}7$ million products to be used for a variety of different commercial businesses. Their product range includes, but is not limited to$,$ cars and trucks, building supplies, and security equipment. The firm has recently been awarded a contract with Vizient, a healthcare service company, to provide floor cleaning equipment to Vizient$$s customers. Global Industrial distributes its products in two ways. It sells its trucks, raw materials, and power transmission products to an independent business that takes title of the products and then sells them to various small businesses throughout the region. Additionally, Global Industrial has a list of large businesses that it distributes to directly on an as$-$needed basis. These businesses keep very little inventory and purchase raw material supplies in small quantities. Recently, Global Industrial has decided to add two new service product lines$$paper shredding and a uniform rental service. The marketing manager, Troy Chua, is conducting a meeting to discuss the ways in which Global Industrial can strategically manage these new businesses. Global Industrial has the choice of marketing the paper shredding service to its large business clients by picking up the paper as they drop off the other supplies, or it can buy a small paper shredding business and market to both large and small business customers. With regard to the uniform rental service, Global Industrial can either pick up and deliver the uniforms to the small businesses themselves or contract that out to a third party.

Refer to Scenario $14\mathrm{.}2.$ Currently, what approach is Global Industrial using to distribute its raw material supplies to its large customers?

Just$-$in$-$case

Exclusive

Just$-$in$-$time

Intensive

Outsourcing