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LOGISTICS & TRANSPORTATION METHODS
BMI – Marketing Mix Distribution (Place)
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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.
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Factors affecting choice of transport:
Distance Weight & Volume Type of Goods Cost Accessibility Reliability
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Types of Transportation
Trucks Trains Planes Ships Pipelines
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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
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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
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PLANES Fastest Most expensive
Cannot deliver product directly to source Cannot carry very heavy loads
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SHIPS Costs less than all other methods Can carry large, heavy loads
Travels slower than all other methods Cannot carry product directly to source
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PIPELINES Not influenced by weather
Limited to transporting gases or liquids
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