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Historically, a landlord would rent out a warehouse and leave the internal desi...

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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 insourcing of the warehousing function at food producers to have

sufficient and continuous refrigeration facilities during loadshedding?

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