Chapter 28 - Delivery Systems Flashcards
Why do manufacturers use transport?
○Bring raw materials to factory
○Distribute goods to wholesalers, retailers and customers
○Visit clients to arrange new sales
○Enable employees to travel to work
Why do wholesalers use transport?
○Receive deliveries of good from manufacturers
○Deliver goods to retailers
○Enable cash and carry customers to visit their premises
○Enable employees to travel to work
Why do retailers use transport?
○Receive deliveries from wholesalers and retailers
○Enable customers to visit their shop
○Enable employees to travel to work
Why do consumers use transport?
○Travel to place of work
○Visit friends and relations
○Travel to shops and other retail outlets to purchase goods and services
○Go on holidays
Why do firms offer a delivery system to customers?
- Some goods are too bulky for customers to transport themselves
- Customers may not give the firm their business if they don’t offer a delivery system
- Means of attracting new customers
What is the importance of transport?
○Firms can obtain raw materials they need
○Manufacturers and retailers can distribute goods
○Exports and Imports
○Foreign firms will locate their business in Ireland and provide employment
○Tourists can come to and travel around Ireland
○Irish people can visit foreign countries
○Public utilities can operate efficiently
○Members of public can move easily from one place to another
What are the 5 types of transport?
Road Rail Air Sea Pipeline
What are the advantages of road transport?
►Very little handling of goods
►Can get to your exact destination
►No charge
►Can be used 24 hours a day
What are the disadvantages of road transport?
►Cost of driver’s fuel, wages,insurance is high
►May be delays due to traffic or road repairs
►Slow compared to other forms oftransport
What are the advantages of rail transport?
►Faster than road ►Suitable for bulky goods ►Cheaper than other forms ►Carry containers and special deliveries ►Not affected by weather or heavy traffic ►Railways linked to main ports
What are the disadvantages of rail transport?
►Other methods of transport are needed to get the goods from the station to the final destination
►Operate on fixed timetable
►Goods are handled a lot which increases the risk of damage
►Not every town has a railway station
What are the advantages of air transport?
►Quickest
►Suitable for perishable and urgent goods
►Little chance of damage to goods
What are the disadvantages of air transport?
►Expensive ►Not suitable for large goods ►Bad weather can cause delays ►Fixed timetable ►Other methods of transport needed to get goods from airport to final destination
What are the advantages of sea transport?
►Suitable for bulky goods
►cheaper than air
►V. large cargos can be carried
►Loading and unloading are quick due to special facilities at the port
What are the disadvantages of sea transport?
►Slow
►Fixed timetable
►Can be delays due to bad weather
►Other methods of transport are needed to transport goods from port to final destination
What are the 4 types of shipping?
♦Cargo ships
♦Tramp ships
♦Ferries
♦Liners
What are the advantages of pipelines?
►Once built, there is little cost involved in maintaining and operating pipelines
►Not affected by weather or industrial relation problems
►Little pollution or risk of accident
What are the disadvantages of pipelines?
►Expensive to build
►Can usually only be used for one product
What are the factors affecting choice of delivery system?
♦Cost ♦Speed ♦Distance ♦Type of good ♦Convenience
Explain how cost affects choice of delivery system
- different forms of transport cost different amounts of money, so the cost of each method as well as the amount of money available to the firm must be taken into account.
- e.g. a farmer in Cork sending eggs to Dublin using road transport even though air is quicker. This is because the cost of air would make the eggs too expensive
Explain how the speed affect choice of delivery system
- How quickly goods need to get to the destination is an important factor
- e.g. vital human organs required for transplant operation would be transported by air, because speed is far more important factor than cost
Explain how distance effects choice of delivery system
The distance the good will have to travel is important factor, especially if going to different country
-For example the sender of a large consignment of goods to the US would have to use air or sea
Explain how convenience affects choice of delivery system
-Does the system run on fixed schedules? Or do we require a system that can operate at any time of day or night?
Explain how the type of good affect the choice of delivery system
-For Example heavy machinery can only be transported by road and sea due to its size and weight
