Transportation in Physical Distribution Process:
Transportation is the means of carrying goods and raw materials from the point of production to the point of sale. It is one of the major elements in the physical distribution of goods. It involves integrating the advantages of each transportation method by adopting containers and physical handling producers to permit transfers among different types of carriers.
It is important because unless the goods are physically made available, the sale cannot be completed.
The marketing manager has to decide to
(i) what mode or combination of modes of transportation, example: rail, truck, pipeline, water ways or air etc., should be used to transport products to warehouses and from there to customers?
(ii) Should the transportation cost be reduced and the desired levels of customer service still maintained.
The main regulatory bodies may include:
- The Civil Aviation Department, for air carriers.
- The Shipping Corporation of India, for water carriers.
- The Oil and Natural Gas Commission, for pipeline carriers.
- The Road Transport Corporation of the state, for land or road carriers
- The Railway Authorities, for rail transportation, etc.