Evidencia 4: Resumen “Product distribution: the basics”

Centro de Comercio y Servicios

Gestión Logística (2348572)

Actividad:
Evidencia 4: Resumen “Product distribution: the basics”

Presentado por:
Dagoberto José Reyes Martinez

Instructor
Jorge Torres Caicedo

Content
Introduction...................................................................................................................................... 3

Gestión Logística (2348572)

Evidencia 4: Resumen “Product distribution: the basics”

PRODUCT DISTRIBUTION: THE BASICS.................................................................................. 4

Conclusión........................................................................................................................................ 7

Introduction

Gestión Logística (2348572)

Evidencia 4: Resumen “Product distribution: the basics”

To speak of transport in logistics is to speak of the movement of cargo in all its

known forms: air, sea and land, through which inputs, raw materials and fin-
ished products are transferred from one point to another according to demand
planning. If these three forms of product transfer are analyzed, it can be deter-
mined that air transport is carried out by cargo or commercial aircraft, maritime
transport is carried out by cargo ships, both for loose cargo (break bulk) or con-
tainers, and land transport by freight trains and trucks of all types and sizes. All
of the above forms constitute the movements of the logistics supply chain. The
use of the different types of transport will undoubtedly depend on three funda-
mental variables: the distance between the origin and the destination, the sup-
ply of transport and the final destination of the transport. In the first case, the
distance between the origin and the destination is key because it defines the
type of service level desired and the choice of the form of transport. This is be-
cause it is not the same as the distance being 100 kilometers on the highway
(where the decision would undoubtedly be a truck) or having to dispatch prod-
ucts from Chile to the United States, where the maritime or air modalities could
be chosen; the most likely reality is that it is bimodal, that is, that it adds a sec-
ond type of land transport, either rail or road, to reach the final destination. Sec-
ond, the transportation offer makes sense. This, because depending on the
country the transport networks change. For example, in Chile the most used is
the road, that is, by truck, and in a very minority way products are transported
by train. But if we analyze the case of Europe, rail transport is very relevant in
the movement between countries, as a fundamental backbone for the transfer
of all kinds of products. Much of the above speaks to the policies of countries
and their geographic and economic needs. As a third point, the final destination
of the product is included, where the country or city demanding it is essential to
define the transport to be used. For example, if the port infrastructure of a coun-
try is more developed and all shipping destinations converge there, maritime
transport will undoubtedly have an important relevance compared to the rest; as
well as if dispatches are made between European countries, rail and road trans-
port will become primary, since most of the collaborative work of these origins
and destinations have this type of transport as their main backbone.

Gestión Logística (2348572)

Evidencia 4: Resumen “Product distribution: the basics”

PRODUCT DISTRIBUTION: THE BASICS

Whether it's a small town bakery, eBay seller, or heavy machinery

manufacturer, at some point during the course of your business, you will need
transport your goods. Choosing the right mode of transport means finding a
balance between time and budget constraints. Balance wrong and you will face
with a group of deeply impressed clients. Choosing your mode of transport:
what
to consider
 When choosing the best way to transport your products, the budget should be
the most important factor in your decision making.
 The speed of transport is also important: if you have perishable items,
sending them on a three-month sea voyage through Africa is a bad idea.
Also, make sure that the mode of transportation you choose is reliable so that
your customers are not disappointed.
 If you transport dangerous or dangerous goods, there are several
guidelines that you must adhere to. If you think they may be classified as
dangerous, contact the Dangerous Goods Branch of the Department of
Transportation.
 If your products are expensive or if you send it by sea,
you may want to consider a few for insurance. This will come in the form of
goods-transit or marine insurance, and is paid by the buyer or the seller,
depending on what the terms of trade are. If you think insurance is necessary,
make sure you have agreed the terms with your supplier or customer to
avoid confusion.
 If your cargo is valuable, it may be necessary to use vehicle tracking.
-While damage in transit is quite common, it is generally the responsibility of
supplier to ensure cargoes are properly packaged and labeled for
reduce risk.
Transportation modes
Choosing the correct mode of transport for your products depends on the size
and

Gestión Logística (2348572)

Evidencia 4: Resumen “Product distribution: the basics”

urgency of shipment.
Road
-Road transport is cheap, convenient and one of the most flexible modes of
transport.
Lane
-Rail transport is fast, environmentally friendly and not (always) subject to
congestion or delays. However, it is inflexible and can be very expensive.
Air
-Air transport is undoubtedly the fastest way to transport your products, but the
most expensive.

Gestión Logística (2348572)

Evidencia 4: Resumen “Product distribution: the basics”

Nº ENGLISH SPANISH
1 Aerial Aéreo
2 Airfreight Flete por avión
3 Airelines Aerolíneas
4 Cheap Barato
5 Consider Considerar
6 Costly Costoso
7 Dangerous Peligroso
8 Details Detalles
9 Forwarders Transportista
10 Guidelines Pautas
11 Hazardous Peligroso
12 Land Terrestre
13 Operating Operando
14 Planning Planificación
15 Ports Puertos
16 Road Camino
17 Schedules Horarios
18 Shipment Envió
19 Speed Velocidad
20 Railway Ferroviario

 Land transport is the most used.

 There are two very important maritime ports in Colombia.

 Marketing Planning is vital.

 You have to take into account the delivery times.

 Air freight is the most expensive.

Gestión Logística (2348572)

Evidencia 4: Resumen “Product distribution: the basics”

Conclusión

The distribution must consider the correct delivery of the product, in the place
right and at the right time, at the lowest possible cost. Create value for
customers, partners and suppliers that is expressed in time and place. Its im-
portance
is due to:
• Costs, helps to avoid the decrease of profit margins.
• Distribution and supply lines.
• Market penetration, increase participation and profits.
• For the factors of order size, inventory level and delivery time, logistics plays a
decisive role. It has the following objectives:
1. Supply the quantity of products that are demanded to the points of
Right sales at the right time and at the lowest possible cost.
2. Decide on key aspects of the physical layout:
• Transportation and supply to points of sale.
• Storage, packaging and handling of materials.
• Purchasing administration.
• Inventory management and control.
• Decisions about the service and waiting times to provide it.

Gestión Logística (2348572)