Section 22.1 Transportation Chapter 22 physical distribution Section 22.2 Inventory Storage.

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Presentation transcript:

Section 22.1 Transportation Chapter 22 physical distribution Section 22.2 Inventory Storage

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. Section 22.1 Transportation

The Nature and Scope of Physical Distribution Section 22.1 physical distribution Activities for delivering the right amount of product to the right place at the right time. Physical Distribution Key link between a business and its customers Goods can be stored in convenient locations Also known as logistics Each link in the system affects the other links Needs to be as efficient and cost effective as possible

Transportation The Nature and Scope of Physical Distribution Section 22.1 Three Factors Affecting Transportation Costs

Transportation Types of Transportation Systems Section 22.1 Percentage of Freight Shipped by Each Type of Single-Mode Transportation in the United States

Transportation Types of Transportation Systems Section 22.1 Advantages of Truck Transportation Disadvantages of Truck Transportation Convenient door-to-door delivery Rapid delivery reduces the need for large inventories Cost more than rail and water carriers Susceptible to delays

Transportation Types of Transportation Systems Section 22.1 Trains transport nearly 15 percent of the total ton-miles of freight shipped in the United States. Rates charged for less-than-carload shipments are more expensive. ton-mile Movement of one ton (2,000 pounds) of freight one mile. carload Minimum number of pounds of freight needed to fill a boxcar.

Transportation Types of Transportation Systems Section 22.1 Advantages of Railroad Transportation Disadvantages of Railroad Transportation Low cost Requires less energy than motor carriers Seldom slowed by bad weather Lack of flexibility of delivery locations

Transportation Types of Transportation Systems Section 22.1 Advantages of Pipelines Disadvantages of Pipelines Low operational costs Safety record Low instances of damage or theft Not subject to weather delays Leaks can damage the environment

Transportation Types of Transportation Systems Section 22.1 Advantages of Marine Shipping Disadvantages of Marine Shipping Low costSlow Freight must be off-loaded onto railroad cars or motor carriers Affected by bad weather

Transportation Types of Transportation Systems Section 22.1 Advantages of Air Cargo Services Disadvantages of Air Cargo Services Speed Reduced inventory expenses and storage costs High cost Mechanical breakdowns Weather delays

Inventory storage allows a business to keep its products in a safe location until they are needed or ready to be sold. Inventory Storage Section 22.2

Inventory Storage Section 22.2 The Storage of Goods Types of Warehouses Private Warehouse Public Warehouse Distribution Center private warehouse A storage facility designed to meet the specific needs of its owner. public warehouse A storage and handling facility offered to any individual or company that will pay for its use. distribution center A warehouse designed to speed delivery of goods and to minimize storage costs.