Many small retailers tend to outsource the transportation of their supply chains to a third party. On the other hand, a large retailer such as Walmart chooses to own its own trucks and manage transportation itself.
a) Discuss why, in general, small retailers benefit more from outsourcing transportation than Walmart.
b) Even if a third party could reduce Walmart’s transportation costs, outsourcing to it may come with risks. Provide two examples of risks that Walmart might have if they were to outsource their transportation to a third party.