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A key objective of
product distribution is to get products into customers’
hands in a timely manner.
While delivery of digital products
can be handled in a fairly smooth way by allowing customers
to access their purchase over the Internet (e.g., download
software, gain access to subscription material), tangible
products require a more careful analysis of delivery options
in order to provide an optimal level of customer service.
However, as is known, “optimal” does not always translate
into fastest. |
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In terms of delivering products to customers, there are six
distinct modes of transportation: air, digital, pipeline,
rail, truck, and water. However, not all modes are an option
for all marketers.
Each mode offers advantages and
disadvantages on key transportation features that include:
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Product Options - This feature is concerned with the
number of different products that can realistically be
shipped using a certain mode. Some modes, such as pipeline,
are very limited in the type of products that can be shipped
while others, such as truck, can handle a wide-range of
products.
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Speed of Delivery - This refers to how quickly it takes
products to move from the shipper’s location to the buyer’s
location.
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Accessibility – This transportation feature refers to
whether the use of a mode can allow final delivery to occur
at the buyer’s desired location or whether the mode requires
delivery to be off-loaded onto other modes before arriving
at the buyer’s destination. For example, most deliveries
made via air must be loaded onto other transportation modes,
often trucks, before they can be delivered to the final
customer.
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Cost – The cost of shipment is evaluated in terms of the
cost per item to cover some distance (e.g., mile,
kilometer). Often for large shipments of tangible products
cost is measured in terms of tons-per-mile or
metric-tons-per-kilometer.
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Capacity – Refers to the amount of product that can be
shipped at one time within one transportation unit. The
higher the capacity the more likely transportation cost can
be spread over more individual products leading to lower
transportation cost per-item shipped.
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Intermodal Capable – Intermodal shipping occurs when two
or more modes can be combined in order to gain advantages
offered by each mode. For instance, in an intermodal method
called piggybacking truck trailers are loaded onto railroad
cars without the need to unload the trailer. When the
railroad car has reached a certain destination the truck
trailers are off-loaded onto trucks for delivery to the
customer’s location.
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