279 Section 10.3 Place Copyright Goodheart-Willcox Co., Inc. An indirect channel uses intermediaries to get the product from the manufacture to the end users. For example, a bicycle may go from the producer, to a wholesaler, and the retailer before reaching the end user. Transportation Options Transportation is the physical movement of products through the channel of distribution. If the channel of distribution includes moving products from one place to another, there are a number of transportation options. The six main types of transportation are truck, train, plane, ship, pipeline, and digital, as shown in Figure 10-6. Figure 10-6. Each transportation method has its drawbacks. Transportation Modes for Distribution Transportation Mode Advantages DIsadvantages Road • Can deliver door to door • Flexible schedules • Can be modified for specific cargo (i.e., refrigerator trucks) • Weather delays • Traffic delays • Maintenance problems Rail • 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 Air • 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 Water • 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 Pipeline • 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 Digital • Low to no operating cost • Easy access • Very fast delivery • Only for electronic goods or services Goodheart-Willcox Publisher Source: US Census Statistical Abstract