Transportation

Marketers require taking an interest in their company's transportation decisions. The option of transportation carriers influences on the pricing of products, delivery performance, and condition of the goods while they arrive-all of which will influence customer satisfaction. In shipping goods to its warehouses, customers, and dealers, the company may choose among five transportation modes: truck, rail, water, pipeline, and air.

Railroads are the nation's greatest carrier, accounting for 26 % of total cargo ton-miles moved. They are one of the most cost-effective modes for shipping high amounts of bulk products-sand, coal, minerals, farm and forest products-over long distances. In current years, railroads have amplified their customer services by designing new equipment to handle special categories of goods, by providing flatcars for carrying truck trailers by rail (piggyback), and by providing in-transit services like the diversion of shipped goods to other destinations en route and the processing of goods en route. Therefore, after decades of losing out to railroads, truckers appear prepared for a comeback.

Trucks have enhanced their share of transportation progressively and now account for 24 % of total cargo ton-miles (over 52 % of actual tonnage). They account for the highest portion of transportation within cities as opposed to among cities. Trucks are largely flexible in their routing and time schedules and they may usually offer quicker service than railroads. They are capable for short hauls of high-value merchandise. Trucking firms have added various services in current years. Pipelines are a specialized means of shipping, natural gas, petroleum and chemicals from sources to markets. Most pipelines are utilized by their owners to ship their own products.

Although air carriers transport less than 1 % of the nation's goods, they are becoming more significant as a transportation mode. Air freight rates are much superior to truck or rail rates, but air freight is ideal when speed is required or distant markets have to be reached. Amongst the most frequently air-freighted products are perishables (cut flowers, fresh fish) and high-value, low-bulk items (jewellery, technical instruments). Companies discover that air freight also decreases inventory levels, packaging costs, and the number of warehouses required.

Shippers increasingly are utilizing intermodal transportation-joining two or more modes of transportation. Piggyback explain the use of trucks and rail; water, fishy back and trucks; tranship, water and rail; and air, air truck and trucks. Combining modes provides advantages that no single mode may deliver. Each of the combination offers advantages to the shipper. For instance, not just is piggyback cheaper than trucking alone but also it provides convenience and flexibility.

In selecting a transportation mode for shippers, product must balance various considerations: dependability, speed, availability, cost, and others. Therefore, if a shipper requires speed, truck and air are the major choices. If the goal is low cost, then water or pipeline may be best. Shipping costs are frequently a significant portion of the marketing costs of a product. It is frequently difficult for businesses to pass on these superior costs to customers while there are active competitors. One choice is to reduce dependence on the unreliable transportation. Though, that may not be probable for some businesses. As the case you just read suggests, a company's physical distribution and transportation flexibility is significant part of its marketing decisions, a factor that could break or make its ability to serve its customers.