If business firm can deliver goods and satisfactory services to customers, it can earn goodwill.

Nature
of goods, needs of customers, cost, time for delivery (speed), reliability, capacity, access, security
etc. should be considered while selecting means of transport.

Selection or choice of mode of transport affects the whole physical distribution system. So proper
means and mode of transport should be selected keeping all these factors in mind.

1. Cost

Water transport is the cheapest means for transporting raw materials or finished goods. Road
transport is relatively costly and airway transport is the costliest.

2. Speed

The time taken by the means of transport in transporting goods is called speed. The means of high
speed takes shorter time to transport goods or people to the destination, but the means of slow
speed takes longer time. Airway transport is fastest means whereas human and animals are the
slowest means. Water transport system is cheap means but it is very slow.

3. Accessibility Or Availability

All means of transport have no same accessibility. There is neither accessibility nor
availability of pipeline and water ways/sea route in some countries. So, road
transport is the best among available means.

4. Capacity

Railways and water ways are the best means in carrying capacity. They can
transport huge and heavy loads. The means of rad transport are medium whereas
airways can carry only limited loads and are the costliest means.

5. Reliability

The task of carrying goods to destination at right time regularly is called reliability.
Pipeline transport system is the best reliable means whereas road transport, railway,
human and animals are supposed to be good or reliable means of transport.