1. Aside from potentially reducing costs, how else might company by participating in the consolidated warehouse?
Key points may include but are not limited to: better customer service (in various forms) to Ace, synergy through coordination with partners, SPP may be able to utilize/share assets not financially feasible on their own
2. What disadvantages might exist in a consolidated warehouse as opposed to a direct shipping situation?
Key points might be: added risk through ownership (part-ownership), potential difficulties with coordination across partners, incongruent objectives may lead to tribulations, and possible cash flow difficulties due to fixed investment expenditures