Unit 7: Place

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Unit 7 Place
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Physical Distribution

• All the activities that help to ensure that the
  right amount of product is delivered to the right
  place at the right time.
• Also known as logistics.
• Involves order processing, transporting, storing,
  stock handling, and inventory control.

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Transportation

• Marketing function of moving products from a
  seller to a buyer.
• There are five major forms of transportation
  including motor carriers, railroads, waterways,
  pipelines, and air carriers.

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Types of Carriers

• Common Carriers-provide transportation services
  to a business for a fee.
• Contract Carriers-For-hire carriers that provide
  equipment and drivers for specific routes.

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Types of Carriers

• Private Carriers-Transport goods for an
  individual business.
• Exempt Carriers-Free from direct regulation of
  rates and operating procedures.
• Ex carry agricultural products.

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Rail Transportation

• Railroads transport things in ton miles.
• A ton mile is the movement of one ton of freight
  one mile.
• A carload is the minimum number of pounds of
  freight needed to fill a trains boxcar.

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Rail Transportation

• Railroads offer several pricing and delivery
  services including
• Piggyback service
• Fishyback service
• Package arrangements
• Diversion-in-transit service
• Processing-in-transit service

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Piggyback and Fishyback Services

• Piggyback Service Gets its name from carrying
  (piggybacking) loaded truck trailers over land on
  railroad flat cars.
• Fishyback Service is shipping loaded truck
  trailers over water on ships and barges.

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Rail Transportation

• Package Arrangements - Allow several shippers who
  are sending their items to a common destination
  to combine their items to fill an entire carload.
• Diversion-in-Transit Service Allows the
  redirection of carloads already en route.
• Processing-in-Transit Service Permits shippers
  to have products processed, repackaged, and
  assembled while in transit to their final
  destination.

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Water Transportation

• Shipment over water is one of the oldest methods
  of transporting merchandise.
• Types of water way shipping include
• Internal and Intracoastal Waterways
• International Waterways

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Shipping

• Internal Shipping Shipping from one port to
  another on connecting rivers and lakes.
• Intracoastal Shipping Shipping of goods between
  ports along the Atlantic or Pacific coasts or
  from one coast to the other.
• International Waterways The oceans and rivers
  that connect continents and countries.

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Pipelines

• Most frequently used to transport oil and natural
  gas.
• They move crude oil from oil field to refinery,
  where it s processed.
• The refined products, such as gasoline, are then
  trucked to retail outlets such as your local gas
  station.

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Air Transportation

• Currently less than one percent of the total
  ton-miles of freight shipped.
• High-value, low-weight items such as overnight
  mail are often shipped by air.
• Air freight is the most costly
• form of distribution.
• Because of space constraints, items usually
  carried are valuable, light-weight, and time
  sensitive.

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Transportation Service Companies

• Handle small and medium sized packages. These
  include
• U.S. Postal Service
• Express Carriers
• Bus Package Carriers
• Freight Forwarders

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Transportation Service Companies

• U.S. Postal Service Ships small packages by
  parcel post or fourth-class mail.
• Parcel post is used more for shipping large and
  oversized packages weighing less than 70 pounds
  and not more than 130 inches.
• Fourth-class includes 16 ounce or less packages
  such as letters, newspapers, printed matter and
  magazines.

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Transportation Service Companies

• Express Carriers Specialize in delivering
  small, lightweight packages and high-priority
  mail usually weighing less than 150 pounds.
• Bus package Carriers Provide transportation
  services for packages weighing less than 100 lbs.
  Ex Greyhound does same-day or next-day service.

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Transportation Service Companies

• Freight Forwarders Private companies that
  combine shipments from several different
  businesses and deliver them to their destinations.

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Stock Handling

• Manufacturers and suppliers all receive many
  different parts or raw materials for use in
  making finished products.
• These items are received in stock and must be
  tracked just as retailers track the merchandise
  they receive.

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Stock Handling

• Whether a business receives raw materials, parts
  or merchandise, a process is needed for handling
  items received.
• The steps in the stock handling process include
  receiving merchandise, checking merchandise,
  marking merchandise, and transferring
  merchandise.

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Receiving Record

• Every business records the goods it receives in a
  receiving record or log.
• Receiving Record form that is used to describe
  the goods received by a business.

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Receiving Record

• The items on a receiving record can include such
  things as
• Person who received shipment
• Place from which the goods were shipped
• Name of the carrier
• Number of items delivered
• Weight of items delivered
• Shipping charges
• Department or store that ordered the merchandise
• Date the shipment was received

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Checking Merchandise

• The process of going through the goods upon
  receipt to make sure they arrived undamaged and
  that the merchandise ordered was the merchandise
  received.

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Returning Merchandise

• All incorrect items, damaged merchandise, and
  items ordered but not received are identified
  and reported according to the policies of the
  business.
• When this is done, the business can get proper
  credit or adjustments from the carrier or the
  seller.

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Marking Merchandise

• After it has been received and checked,
  merchandise must be marked with the selling price
  and other information.
• The most common method of marking price is with a
  UPC (Universal Pricing Code), however a
  hand-operated pricing machine or pricing tickets
  can be used as well.

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Price Tickets

• Gum Labels can be used on merchandise with a
  hard, flat surface such as books.
• Pin Tickets used on merchandise that will not
  be damaged by the pinholes, such as socks or
  scarves.
• String or Plastic Tags used for larger
  articles, such as dresses, shirts, and suits.
• Tags are also good for when a customer needs to
  return an item. They have to have the tags on
  the item in order to return it.

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Transferring Merchandise

• Once an item is received, checked, and marked, it
  is ready to be moved to the sales area.
• From there it is transferred to different
  departments within the business.