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.
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.
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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.
