PAF- K.I.E.

T
DISTRIBUTION MANAGEMENT

SESSION THREE

BY
NAEEM BHOJANI
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Scope of transportation
• Opportunity for growth in market competition
• Deeper penetration
• Wider the product distribution, greater the
demand
• More efficient and lower transportation cost
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Principles of transportation function
 Continuous flow
 Optimize unit of cargo
 Maximum vehicle unit
 Adaptation of vehicle unit to volume and nature of traffic
 Standardization
 Compatibility of unit load equipment
 Minimum of dead weight to total weight
 Maximum utilization of capital, equipment and personnel
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Relationship of transportation to other business
functions:
 Traffic management & transportation
 Warehouse receiving & shipping
 Purchasing
 Customer service
 Product pricing
 Distribution location
 Inventory planning
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Transportation management
 Transport pricing
 Rate negotiation
 Routing
 Transportation operation
 Diversion and re-consignment
 Risk and claims
 Export and import
 Analysis of transportation cost and services
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 Common carriers
 Contract carriers
 Exempt carriers
 Freight forwarder
 Modes of transport
 Selection of transport mode
 Transport cost