Chapter 22

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Physical Distribution

Also known as logistics. All the activites (such as order processing, transporting, storing, stock handling, and inventory control) that help to ensure that the right amount of products is delivered to the right place at the right time.

Transportation

The marketing function of moving a roduct from the place where it is made to the place where it is sold.

Common Carriers

Provide transportation services to any business in tehir operating area for a fee.

Contract Carriers

For-hire carriers that provide equipment and drivers for specific routes, according to agreements between the carrier and the shipper.

Private Carriers

Transport goods for an individual business. The transport equipment can be owned or leased to meet the specific transportation needs of the business.

Exempt Carriers

Free from direct regulation of rates and operating procedures. Usually carry agricultural products.

Intermodal Transportation

Combines two or more transportation modes to maximize the advantages of each.

Piggyback

Carrying loaded truck trailers over land on railroad flatcars. Trucks will then take the trailers to their destinations.

Fishyback

Shipping loaded truck trailers over water on ships and barges.

Ton-mile

The movement of 2,000 pounds of freight 5,280 feet.

Carload

The minimum number of pounds of freight needed to fill a boxcar.

Inland Shipping

Shipping from one port to another port on connecting rivers and lakes. For example: St. Lawrence Seaway.

Intracoastal Shipping

The shipping of goods on inland and coastal waterways between ports along the same coast.

Freight Forwarders

Private companies that combine less-than-carload or less-than-truckload shippments from several different busiensses and deliver them to their destinations.

Storage

A marketing function and refers to the holding of goods until they are sold.

Private Warehouse

A facility designed to meet the specific needs of its owner.

Public Warehouse

It offers storage and handling facilities to any individual or company that will pay for its use.

Distribution Center

A warehouse designed to speed delivery of goods and to minimize storage costs. Its focus is on sorting and moving products, not storing them.

Bonded Warehouses

public or private, store products that require the payment of a federal tax. Imported or domestic products cannot be removed until the required tax is paid.

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