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: Jetstream Aerospace - Case Study Example

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It is an important aspect of many businesses and involves the contracting of a different company to deliver products or services to the clients that the main company is unable to deliver efficiently to customer’s…
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Case Study: Jetstream Aerospace
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Download file to see previous pages The third advantage is that there will be increased customer satisfaction and confidence since the complaints that have been raised will be resolved.
The disadvantages of using 3PL are that it will increase the cost of operation because the third party will have to be retained even when there are no complaints from the customers. Secondly, Jetstream will lose the direct control of customer service, and this may significantly reduce the customer loyalty and confidence. The loss of control will also lead to a loss of reputation for the company with customer considering it unable to deliver the services (Plunkett, 2009).
First, the company will lose the contact with the customers. When another company offers the aftermarket services, the company will lose its contact with the clients thus breaching the agreement made during the purchasing contract.
Secondly, there is a risk for loss of reputation. Many customers, when served by a third party will consider this as a show of Jetstream’s failure to deliver its promises. Their view of the company will turn negative.
Thirdly, it is likely that with the loss of control of the customer service, the quality of services that the customers will receive will be lower than what the company promises. This will cause even more problems to Jetstream as they retain the accountability for customer services offered by a third party. Fourthly, the company may be unable to pay the retention fees for the third party leading to failure in customer service and loss of competitiveness in the business.
Jetstream should seek to outsource only the transportation activities and logistics that it is unable to handle efficiently. These will include the delivery of aftermarket aircraft parts that have broken down in regions that are far from the main warehouse. In these places, all the ...Download file to see next pagesRead More
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