Basic Marketing: A Global Managerial Approach

Perreault−McCarthy: Basic

Marketing: A

Global−Managerial

Approach, 14/e

12. Distribution Customer
    Service and Logistics

Text © The McGraw−Hill

Companies, 2002

342 Chapter 12

Exhibit 12-5 Benefits and Limitations of Different Transport Modes

Truck High Fast Very extensive High High High

Rail Medium Average Extensive High Low Medium

Water Very low Very slow Limited Very high Very low Medium

Air Very high Very fast Extensive Limited High High

Pipeline Low Slow Very limited Very limited Medium High

Transporting Features

Number of Ability to Frequency of Dependability

Delivery locations handle a scheduled in meeting

Mode Cost speed served variety of goods shipments schedules

Which Transporting Alternative Is Best?

The transporting function should fit into the whole marketing strategy. But pick-

ing the best transporting alternative can be difficult. The “best” alternative depends

on the product, other physical distribution decisions, and what service level the

company wants to offer. The best alternative should not only be as low-cost as pos-

sible but also provide the level of service (for example, speed and dependability)

required. Exhibit 12-5 shows that different modes of transportation have different

strengths and weaknesses. You can find more detail at the website of the Bureau of

Transportation Statistics (www.bts.gov). Low transporting cost is notthe only crite-

rion for selecting the best mode.^15

Railroads are still the workhorse of the U.S. transportation system. They carry

more freight over more miles than any other mode. However, they account for less

Transporting function
must fit the whole
strategy

Railroads—large loads
moved at low cost

Mercedes recently introduced a
new, smaller truck that is
designed to be more flexible in
making deliveries in congested
cities like Istanbul, where this ad
appeared.