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Published by:
Columbia CaseWorks, Columbia Business School (2018)
Version:
April 23, 2018
Revision date:
11-Jan-2019
Length:
14 pages
Data source:
Field research

Abstract

Cargo's mission is to help 'rideshare drivers earn more money by providing complimentary and premium products to passengers.' Cargo sources goods from suppliers to provide a platform for gig economy drivers to run small convenience stores out of their vehicles. Drivers earn additional income, and riders enjoy convenient and affordable access to products during their rides. As the company grew, Cargo faced a number of supply-chain-related challenges including determining the product mix in the Cargo box, replenishment of the product, and the cost of carrying inventory. In particular, would the replenishment decision be driven by the company or the driver and who would bear the responsibility for the inventory cost? The founders also considered how to most efficiently manage its suppliers: Would a centralized or decentralized model best serve Cargo and its drivers? And, how might supply chain contracts with its suppliers help support the company's profitable growth?

Teaching and learning

This item is suitable for undergraduate and postgraduate courses.

Topics

Inventory management; Economic order quantity; Operations management; Supply chain optimization; Supply chain management; Demand planning; Procurement; Gig; Sharing economy; Product mix

Setting

The events covered by this item took place in 2018.

Geographical setting

Region:
Americas
Country:
United States

Featured company

Company name:
Cargo
Type:
Self-owned

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