,
,
,
, Solution and Answer Guide: Novack, Transportation: A Global Supply Chain Perspective, 10e, 2024, 9780357908549; Chapter 2: Transportation
And The Economy
Many U.S. companies are global in scope and need 3PL services wherever they locate. Following Systa’s
move to South Africa gives TEA the opportunity to expand its current domestic operations. South Africa is
particularly attractive because of the expected growth of global manufacturing that will be positioned there.
2. What challenges do you see facing TEA in making this operating expansion?
Solution:
When locating operations in another country, several issues might face TEA. First is the availability and
condition of the transportation infrastructure to be able to move products inland and to the ports. Second is
the availability and skill level of the local workforce. Third is the ability to secure both transportation
equipment and warehousing space. Fourth is the cultural differences in South Africa that could pose
problems for TEA. Finally, government regulations in South Africa might not be conducive to conducting
business as a 3PL.
3. If TEA were to accept the offer, how would you suggest that TEA enter the South African market when
establishing operations?
Solution:
TEA could partner with an existing 3PL in South Africa to begin operations.
Solution and Answer Guide
NOVACK, T RANSPORTATION : A GLOBAL SUPPLY CHAIN PERSPECTIVE , 10E, 2024, 9780357908549;
CHAPTER 2: T RANSPORTATION AND T HE ECONOMY
TABLE OF CONTENTS
Content Type ............................................................................................................................................... 6
[Study Questions]...................................................................................................................................... 6
End of Section Exercise Solutions.............................................................................................................. 9
[Case Questions] ....................................................................................................................................... 9
© 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible 5
website, in whole or in part.
,
,
, Solution and Answer Guide: Novack, Transportation: A Global Supply Chain Perspective, 10e, 2024, 9780357908549; Chapter 2: Transportation
And The Economy
Many U.S. companies are global in scope and need 3PL services wherever they locate. Following Systa’s
move to South Africa gives TEA the opportunity to expand its current domestic operations. South Africa is
particularly attractive because of the expected growth of global manufacturing that will be positioned there.
2. What challenges do you see facing TEA in making this operating expansion?
Solution:
When locating operations in another country, several issues might face TEA. First is the availability and
condition of the transportation infrastructure to be able to move products inland and to the ports. Second is
the availability and skill level of the local workforce. Third is the ability to secure both transportation
equipment and warehousing space. Fourth is the cultural differences in South Africa that could pose
problems for TEA. Finally, government regulations in South Africa might not be conducive to conducting
business as a 3PL.
3. If TEA were to accept the offer, how would you suggest that TEA enter the South African market when
establishing operations?
Solution:
TEA could partner with an existing 3PL in South Africa to begin operations.
Solution and Answer Guide
NOVACK, T RANSPORTATION : A GLOBAL SUPPLY CHAIN PERSPECTIVE , 10E, 2024, 9780357908549;
CHAPTER 2: T RANSPORTATION AND T HE ECONOMY
TABLE OF CONTENTS
Content Type ............................................................................................................................................... 6
[Study Questions]...................................................................................................................................... 6
End of Section Exercise Solutions.............................................................................................................. 9
[Case Questions] ....................................................................................................................................... 9
© 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible 5
website, in whole or in part.
