1. Marketing Essentials Chapter 22

2.  Advantages  Convenient, door-to-door delivery  Less protective packaging  Quick  Disadvantages  Traffic delays, accidents, weather  Size and weight restrictions  Products: less than 1000 pounds, high value

3.  Advantages  Low cost for large quantities  Rarely slowed by weather, accidents  Disadvantages  Lack of flexibility – set route  Lack of flexibility – set schedule to follow  Products: heavy, bulky freight, such as coal, steel, lumber, chemicals, grain, equipment, automobiles

4.  Advantages  Low cost  Disadvantages  Slowest form of transportaion  Must be used in combination  Weather  Location limitations  Products: Bulky, non-perishable

5.  Advantages  Low cost to operate  Low risk of damage or theft  Unaffected by weather  Disadvantages  Initial cost is very high  If damaged, devastating results  Products: oil, natural gas

6.  Advantages  Speed  Less on hand, reduce inventory costs  Disadvantages  Overall cost high  Affected by weather, mechanical failure  Products: high price, light weight, perishable

7.  Private Warehouse – facility designed to meet specific needs  Public Warehouse – storage and handling for individuals or companies  Distribution Center – warehouse designed to speed delivery and storage  Bonded Warehouse – store products that require federal tax payments