Hello and welcome to my blog today.
In my previous post, i discussed about the part one of the components of physical distribution. Today i will be discussing on the remaining part of this great topic.
1. Air transportation.
Air transport recently witnessed a boost with the increased participation of private airlines both local and foreign and the construction of more airports. It is a very fast means of transportation, it is good for delicate, light but costly products and it minimizes damage en-route. Although it is probably the Costliest means of of transportation. It is product-discriminate preferring just light products. It is also a highly weather-dependent therefore, delivery schedule may be disrupted owing to the fact of severe weather conditions.
2. Hybrid.
This is the combination of two or more transport modes in moving the same products to the markets. It could also be called inter-modal transportation. The essence of this means is to exploit the joint merits of the combined modes while minimizing their individuals demerits. Although it us not quite popular but it is still prevalent in Nigeria. The type of hybrid mode involving water and road is called Fishy back. However, it involves rail and road especially when using trucks, it is called Piggy back. Tranship utilizes water and rail, while air truck uses air and truck(Kotler and Armstrong, 1999).
3. Warehousing.
This is another prominent component of the physical distribution system and the second Costliest after air transportation (Kartz and Boone, 1984). Warehousing enables goods to be store till when they're needed by by the consumers. The essence of this is to meet customer service levels by ensuring a timely and rapid supply of the products. A warehouse may be a storage warehouse when goods are collected and held only for short periods before being redistributed down the channel. It is designed to help more goods rather than to store them.
4. Material handling.
Material handling is usually an internal operation performed when the goods had reached, remained in or are leaving the warehouse. Because of this close link between material handling and warehousing, they are sometimes treated together or managed as one function. Apropraite material handling requires the use of maintenance of adequate men and machines to minimise loses from breakage, spoilage(expiry) or theft forklifts, conternatization, conveyor belts wtc are popular material hamdling facilities tgat help minimize losses.
5. Communication (order processing).
This is the set of procedures for dispatching order made by customers. These orders may be submitted directly by the customers or indirectly by a firm's sales person. Whether direct or indirect, the means of transmitting the orders could be personal or through phones, fax, emails, post or even the internet. Orders once received are processed with speed and precision. Invoices and oger documents are promptly and accurately prepared and sent to relevant units including the warehouses.
6. Inventory management.
To avoid out of stock and customer dissatisfaction, goods must be available for purchases as at when needed. Working more with warehouses and material handling men, inventory management ensures an appropriate level of stock always. But carry large sticks to ensure customers satisfaction, incurs higher inventory carrycosts.
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