OVERVIEW

•Importance of transport in the Channels of Distribution

•Modern Developments in Delivery Systems

•Factors affecting the choice of Delivery System

•Types of Delivery System

•Cost of Delivery System

IMPORTANCE OF TRANSPORT IN THE CHAIN OF DISTRIBUTION

1.Transports raw materials to the manufacturer

2.Transports finished goods to the wholesaler/retailer/consumer

3.Transports workers to their workplaces

4.Transports goods to the domestic and international markets

5.Transports customers to the retailers or vice versa

MODERN DEVELOPMENTS IN DELIVERY SYSTEMS

1.New motorways/Dual Carriageways/Ring Roads

2.Toll bridges on motorways

3.An Luas – light rail system in Dublin

4.Dublin Port Tunnel

5.Cycle lanes and Bus Corridors in major cities

6.Metric Speed Limit from Mph to Kph

FACTORS AFFECTING THE CHOICE OF DELIVERY SYSTEM

1.Cost – different systems can add to the price of the goods

2.Speed – certain goods require a faster mode of transport i.e. perishable goods

3.Reliability – system should be punctual

4.Convenience – should be available when required

5.Distance – distance between the buyer and the seller can require a number of different modes of transport

TYPES OF DELIVERY SYSTEMType Advantage Disadvantage

Road -Fast over short distances-Door to Door

Bad weather can cause delaysPoor roads, delays

Rail -Faster over longer distances-Fewer delays

-Restricted by timetable-Requires support transport

Sea -Suitable for containers-Modern Ships

-Can be slow over long distances-Fixed timetables

Air -Fastest form or transport-Very safe

-Can be expensive-Fixed timetables

Pipeline Cheap to maintain as it is underground

Not suitable for a lot of goods

Cost of Delivery

COST OF DELIVERY (2010 P2)

Exam Question – Higher Level 2008 P2

RECAP/REVIEW

Importance of transport in the Channels of Distribution

Modern Developments in Delivery Systems

Factors affecting the choice of Delivery System

Types of Delivery System

Cost of Delivery System