DELIVERY SYSTEMS OVERVIEW Importance of transport

DELIVERY SYSTEMS

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. 2. Transports raw materials to the manufacturer 3. 4. Transports workers to their workplaces 5. Transports customers to the retailers or vice versa Transports finished goods to the wholesaler/retailer/consumer Transports goods to the domestic and international markets

MODERN DEVELOPMENTS IN DELIVERY SYSTEMS 1. 2. 3. 4. 5. 6. New motorways/Dual Carriageways/Ring Roads Toll bridges on motorways An Luas – light rail system in Dublin Port Tunnel Cycle lanes and Bus Corridors in major cities 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. 4. Reliability – system should be punctual 5. Distance – distance between the buyer and the seller can require a number of different modes of transport Convenience – should be available when required

TYPES OF DELIVERY SYSTEM Type Advantage Disadvantage Road -Fast over short distances -Door to Door Bad weather can cause delays Poor 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 (2010 P 2) Cost of Delivery

Exam Question – Higher Level 2008 P 2

RECAP/REVIEW üImportance of transport in the Channels of Distribution üModern Developments in Delivery Systems üFactors affecting the choice of Delivery System üTypes of Delivery System üCost of Delivery System