TRANSPORTATION: MEANING, IMPROTANCE, MODES, FACTORS, DOCUMENT AND ADVANTAGES AND DISADVANTAGES—BY INSTRUCTOR ASAKPA, P.E
MEANING OF TRANSPORTATION: Transportation is the movement of products from a source such as a plant, factory, or workshop to a destination such as warehouse, customer or retail store. Transportation may take place via air, water, rail, road, pipeline or cable routes using planes, boats, trains, trucks and telecommunication equipment as the means of transportation. The goal for any business owner is to minimize transportation costs while also meeting the demand for products. Transportation costs generally depend upon the distance between the source and the destination, the means of transportation chosen, the size and quantity of the product to be conveyed.
IMPROTANCE OF TRANSPORTATION IN MARKETING: The importance of transportation in marketing are as follow:
Availability of raw materials.
Availability of goods to the customers.
It helps in mass production of goods.
It encourages physical supply of products.
It generates employment for different categories of skilled and semi-skilled labour such as drivers, mechanics, dealers and suppliers of motor spare parts etc.
It helps to sustain economic activities of a nation.
It helps to stabilize exchange process.
It promotes business transaction and negotiation efficiency.
It enhances social interaction.
It promotes international trade and relations.
MAJOR MODES OF TRANSPORTATION: The major mode of transportation are:
RAIL ROADS: These are train that carry heavily plants and machineries.
MOTOR CARRIERS: These are trailers, buses, cars etc that carry products from one place to another.
WATER CARRIERS: These include the speed boats, canoes, ships, etc that carry both heavy plants and machineries/light weight products.
PIPELINES: These include oil, diesel fuel, jet fuel, kerosene, natural gas among other petro-chemical products from place of mining to refinery.
AIR CARRIERS: These include the aero planes, cargo, planes, helicopters, jets among others that carry high-priced specialty goods, machinery and industrial products etc.
FACTORS AFFECTING THE CHOICE OF TRANSPORTATION IN MARKETING: Some of the factors in affecting the choice of transportation are as follow:
THE NATURE OF THE PRODUCTS: If you are transporting bulky goods, you will have to tailor your strategy accordingly. It is quite difficult to transport vehicles, heavy plant or machinery by air. Therefore, consideration should be given to heaviness, bulkiness or lightness of goods. It is also important to know that quick delivery is necessary for perishable goods.
THE PRODUCTS VARIABLES: Weight, kilograms, packaging, heaviness among others. e.g. Industrial plants and machineries/equipment are usually transported by either rail or water.
SPEED: Some types of products such as perishable goods , need to reach the customers quickly in such circumstances, a quick plane journey is preferable.
COST: marketing firms also consider cost variables as to cheapness of carrying a product.
NEARNESS TO THE MARKET: When the market or the location of the ultimate consumer is very close to the producer, this most often determine the mode of transport to use.
MAIN DOCUMENT USED IN TRANSPORTATION: The following are some of the documents used in transport.
BILL OF LANDING: This is the most important export document whenever goods are sent by ship. It contains the name of the shipping company, the name of the shipper[beneficiary] or his agent, the name of the carrying vessel, the names of the ports of shipment and discharge, the number of containers, cases, packages or individual items.
CONSIGNMENT NOTE[DELIVERY NOTE]: It is sometimes called a rail and road consignment note or delivery note. It is normally prepared by the transport company or freight forwarder. The consignment note consist of the name and address of the sender[consignor] the name and address of the recipient[consignee], the number of packages or cases, a brief description of the goods, the place of departure and the date of departure, the time of arrival, the signature of the carrier etc.
AIRWAY BILL/AIR CONSIGNMENT NOTE: This is the document used whenever goods are sent by air. An airway bill is issued by an airline company. It contains the name of the airline company or carrier, the name and address of the shipper[beneficiary], the name of airport of departure and destination, flight number and actual flight date, a description of the goods in general terms, its weight and the freight charged, its declared value.
ADVANTAGES OF ROAD TRANSPORT:
Road transport is flexible, it provides door to door services.
It is possible to reach all parts of the country except where there is no road.
Road transport is easy to load and unload.
Road transport is relatively cheap.
DISADVANTAGES OF ROAD TRANSPORT:
Loads to be carried by road transport are limited.
There is high incidence of break down and delay e.g. when tyre is puncture or deflated.
Road transport creates congestion and traffic hold up on the highway.
ADVANTAGES OF RAIL TRANSPORT:
Rail transport is more reliable.
Rail accidents are minimal.
It is good for transporting heavy goods.
It is suitable for long distance transportation over a direct route.
DISADVANTAGES OF RAIL TRANSPORT:
It is very slow and time wasting.
It is not flexible and does not provide door to door services.
The cost of maintenance is very high.
ADVANTAGES OF AIR TRANSPORT:
It is the fastest means of transportation.
It is very comfortable for international workers.
It can travel long distance.
It facilitates international trade.
It is used to carry fragile and perishable goods.
DISADVANTAGES OF AIR TRANSPORT:
It is very expensive.
Its safety is questionable[ high rate of accident].
It is not flexible because it does not provide door to door services.
It is not suitable for carrying heavy goods.
ADVANTAGES OF WATER TRANSPORT:
It is the cheapest means of transportation.
It is good for conveying heavy loads.
It facilitates international trade.
DISADVANTAGES OF WATER TRANSPORT:
It is very slow and time consuming.
It moves on time schedules.
It is not flexible because it can only move on water.
ADVANTAGES OF PIPELINE TRANSPORT:
The cost of maintenance is low.
It reduces congestion of vehicles on the road.
Chances of accident are limited.
It facilitates easy distribution of petroleum products.
DISADVANTAGES OF PIPELINE TRANSPORT:
It requires a lot of money to construct.
It may lead to illegal bunkering.
It may result to spillage which can cause environmental pollution