The case study states that “historically, a landlord
would rent out a warehouse and leave the internal design and kitting out to the
tenant. Logistics providers are increasingly looking to allocate their capital
differently, rather than tying up large up-front amounts of working capital
into racking, shelving and design.” However, post-pandemic, the loadshedding in
South Africa caused big losses for food manufacturers, for example chicken
producers, who struggled to maintain their cold chain. Due to the high cost of
remodelling a warehouse to maintain the cold chain amidst loadshedding some
food producers consider outsourcing their warehousing function to other
warehouses with refrigeration facilities included. Which one of the following
options would favour the outsourcing of the warehousing function at food
producers to have sufficient and continuous refrigeration facilities during
loadshedding?

Question

The case study states that “historically, a landlord
would rent out a warehouse and leave the internal design and kitting out to the
tenant. Logistics providers are increasingly looking to allocate their capital
differently, rather than tying up large up-front amounts of working capital
into racking, shelving and design.” However, post-pandemic, the loadshedding in
South Africa caused big losses for food manufacturers, for example chicken
producers, who struggled to maintain their cold chain. Due to the high cost of
remodelling a warehouse to maintain the cold chain amidst loadshedding some
food producers consider outsourcing their warehousing function to other
warehouses with refrigeration facilities included.  Which one of the following
options would favour the outsourcing of the warehousing function at food
producers to have sufficient and continuous refrigeration facilities during
loadshedding?

Answer

When the organisation can increase their production
capacity by adding energy-efficient additional refrigeration facilities to their
own facilities

Answer

When there is additional refrigeration capacity
available at the producer’s own decentralised facilities

Answer

When the organisation’s requirements for storing
products are very stringent and leased refrigeration facilities cannot keep the
food items consistently between 2 °C  and 8  ° C

Answer

When it costs the food producer more to add solar
panels to their existing facilities to keep the items refrigerated during
loadshedding

Crowdly

The case study states that “historically, a landlord would rent out a warehouse...

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