LOGISTICS & TRANSPORTATION METHODS BMI – Marketing Mix Distribution (Place)

LOGISTICS The process of designing and managing a supply chain. This consists of all the activities involved in getting goods and services from the original source to the ultimate consumer.

Factors affecting choice of transport: Distance Weight & Volume Type of Goods Cost Accessibility Reliability

Types of Transportation Trucks Trains Planes Ships Pipelines

TRUCKS Costs less than airplane, similar to train Travels faster than ships, but slower than trains or airplanes Only method of transportation that takes goods directly to the door

TRAINS Can carry large and heavy loads, more than planes or trucks Costs less than planes, similar to trucks Cannot carry product directly to source

PLANES Fastest Most expensive Cannot deliver product directly to source Cannot carry very heavy loads

SHIPS Costs less than all other methods Can carry large, heavy loads Travels slower than all other methods Cannot carry product directly to source

PIPELINES Not influenced by weather Limited to transporting gases or liquids