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Homework answers / question archive / Can you think of an example of a product for which the warehouse or the method of transportation is the channel leader?

Can you think of an example of a product for which the warehouse or the method of transportation is the channel leader?

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Can you think of an example of a product for which the warehouse or the method of transportation is the channel leader?

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Harry & David is a shipper of gourmet foods, especially known for their premium pears. They are located in Oregon and grow most of their own fruit. The pears are seasonal and perishable. Reliable, fast and effective transportation is critical to get the fruit to the customer undamaged.

Harry & David uses FedEx as their main transportation channel from business to customer. They ship approximately 7 million packages annually, according to an article published in 2014. FedEx must transport the pears without damage from handling or the influence of weather, rapidly and accurately. The pears have to arrive fresh and free from damage.

FedEx is not only Harry & David's transportation channel leader for pears. Harry & David have a sufficient supply of produce, but they source their baskets and sundries for shipment from the Far East. Being a seasonal supplier, they cannot purchase in enough quantity to make the shipments cost-effective. FedEx aids them through the FedEx Trade Network, where FedEx connects businesses with less-than-full shipments and enables them to ship their items together, creating full shipments and economic savings.

In the case of Harry & David, FedEx shipping and FedEx Trade Networks are the transportation channel leaders. Without this partnership, Harry & David could not ship their produce as effectively or efficiently.