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Chapter 10 Product, Price, and Place
Transportation Modes for Distribution
Transportation
Mode
Advantages Disadvantages Percentage of Products
Shipped (determined by
dollar value)
Truck (direct and
indirect)
• Can deliver door to door
• Flexible schedules
• Can be modified for specific
cargo (i.e., refrigerator trucks)
• Weather delays
• Traffic delays
• Maintenance problems
87.4
Train (indirect) • Send large quantities over
long distances
• Inexpensive
• Can carry trucks closer to
the destination
• Can be modified for
cargo (flatbed railcars for
intermodal containers)
• Slower method of
transportation
• Minimal destination
flexibility
• Needs a second mode of
transportation to get to final
destination
4.6
Plane (indirect) • Fastest mode of
transportation
• Less chance of damage to
items
• Can save on warehousing
as products arrive as
needed
• Most expensive
• Weather delays
• Maintenance problems
• Needs a second mode of
transportation to get to final
destination
2.6
Ship (indirect) • Send large quantities over
long distances
• Can be modified for cargo
(i.e., tankers for oil)
• Inexpensive
• Slowest method
• No destination flexibility
• Needs a second mode of
transportation to get to final
destination
1.2
Pipeline (indirect) • Not subject to weather
delays
• Fewer maintenance issues
• Low operating costs
• Can only carry products
that flow (i.e., gasoline)
• Expensive to build
• Leaks linked to
environmental damage
• Needs a second mode of
transportation to get to final
destination
4.2
Digital (direct) • Low to no operating cost
• Easy access
• Very fast delivery
• Only for electronic products
or services
unknown
© Goodheart-Willcox Publisher
Source: 2007–2010 Census Statistical Abstract
Figure 10-7. Each transportation method has its drawbacks.