What do Customers Expect?

By | February 13, 2012

Customers expect right goods, at right time, at right place. Consumers should get the required product when and where they want. Speedy delivery, Reliability of services, No out of stock conditions, Variety of goods.

Railways are preferred for transporting heavy, bulky products at distant places.
Railways provide:

– Unitized train
– Piggy, back service
– Containerization.

Airways: Its main advantage is speedy services over long distances but it is the most expensive transportation.

Water Transport: It is inexpensive but very slow.

Pipelines: They are used to move liquids and gases. They are economical. It can be measured in ‘tons originated’ ‘ton miles’

Information Monitoring: Managers responsible for physical distribution must be updated with the required information. For example, warehousing facilities, type of transportation, inventory management, future requirements. Etc.

Explain the benefits of warehouses.

The following are some of the benefits of the warehouses:

It gives power to the farmers to store the produce and helps them to secure better prices for their produce.

It provides purchasing power to traders.

It stabilizes prices as it equates supply to demand.

It facilitates future trading.

It plays a very significant role in implementing the agricultural price policy of the government.
Wastages which occur due to improper storage of agricultural produce can be reduced if warehousing is established on a large scale.

List the types of warehouses.

Types of warehouses are:

1. General Merchandise warehouse: It stocks number of different products and different varieties.

2. Speciality warehouse: It stores special line of products.

3. Refrigerated warehouses: Perishable goods like milk products, fruits and vegetables that require cold storage facilities.

4. Bonded warehouse: They insure goods against loss.

5. Bulk storage warehouse: It stores liquid products like petroleum, chemicals, gasoline etc.

What are the functions of warehousing?

Product Assortment

Break down bulk in more appropriate size.
Placement of goods.

Why is physical distribution important?

Physical distribution is very important as:

1. It gives competitive advantage. Efficient physical distribution can give tough competition to the rival.

2. Maximize customer value. It aims at improving customer services.

3. Create time and place utility. It important for smooth functioning of the business.

What alternative transport media are available to a firm? What are their relative strengths and weaknesses?

A firm may have many options of transportation to move the goods from one place to another. Transportation facilities must be adequate for the smooth functioning of the firm. Transportation can be via.

– Road
– Rail
– Air
– Water
– Pipelines

Road Transport is transferring goods via roadways through trucks, tempos, vans etc. It is feasible for short distant transfer or regions within the country.

Roadways are further classified into:

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