Chapter Systems and
Transportation 22
Services
Physical Distribution
• Section 22.1 Transportation Systems and
Services
• Section 22.2 Inventory Storage
Key Terms physical distribution transportation common carriers contract carriers private carriers exempt carriers ton-mile carload freight forwarders Transportation Systems and
Services
Objectives
Describe the nature and scope of physical distribution Identify transportation systems and services that move products from manufacturers to consumers Name the different kinds of transportation service companies
Marketing Essentials Chapter 22, Section 22.1
Transportation Systems and
Services
Study Organizer
Use a figure like this to list the advantages and disadvantages of each type of transportation system. Marketing Essentials Chapter 22, Section 22.1
physical distribution Activities to deliver the right amount of product to the right place at the right time.
The Nature and Scope of Physical
Distribution
Physical distribution X comprises all the activities that help to ensure that the right amount of product is delivered to the right place at the right time.
Also known as logistics, physical distribution involves: • Processing
• Transporting
• Storing
• Stock handling
• Inventory control
Marketing Essentials Chapter 22, Section 22.1
Types of Transportation Systems transportation The marketing function of moving a product from the place where it is made to the place where it is sold. Transportation X is the marketing function of moving a product from the place where it is made to the place where it is sold. Its costs are a significant part of each sale, so both manufacturers and sellers look for the most cost-effective delivery methods.
Marketing Essentials Chapter 22, Section 22.1
Trucking
Trucks, or motor carriers, are the most frequently used transportation mode. They carry goods with short shelf lives and ones that are expensive for a business to keep in inventory.
Marketing Essentials