GETTING IT THERE
| DOI | https://doi.org/10.1108/eb057161 |
| Date | 01 January 1981 |
| Published date | 01 January 1981 |
| Pages | 9-10 |
| Subject Matter | Economics,Information & knowledge management,Management science & operations |
GETTING
IT
THERE
BY MICHAEL REED,
MARKETING DIRECTOR,
LEP TRANSPORT LTD.
Focus on the factors that
govern cost-efficient
export distribution
THE influence of a company's dis-
tribution system on cost and the level
of customer service is well recognised
although it is sometimes argued, par-
ticularly by those in the transport
industry, that this is too often a case of
paying "lip service", insufficient time
and effort being devoted to an exami-
nation of this area.
Given the importance of distribu-
tion, it is reasonable to conclude that
care should be taken in the selection
of transport modes and routes and the
lengthier and more complex the dis-
tribution network the more important
becomes this process of selection.
The selection of modes and routes
for export traffic can be taxing. Not
only is it a matter of knowing what is
available generally and its charac-
teristics, but also of knowing that
which is available at a particular time,
for we live in a volatile world subject
to rapid advance in technology and
perhaps of more significance to inter-
national transport, subject to sudden
and sometimes violent political
upheaval.
The considerations in export dis-
tribution will therefore be seen to
encompass not merely the workaday
scene of ships, trailers, containers,
aircraft; of freight rates, documenta-
tion and customs clearance, but must
also take in a wider view of the world
and its problems.
To reduce the situation to manage-
able proportions it is as well to look at
an individual export movement and to
examine the factors which will influ-
ence the choice of mode and route.
There are two constants to any
movement, product and destination,
although even within destination
there may be a degree of flexibility.
For example, let us assume a move-
ment destined for a buyer in Mexico
City routed sea-freight to Vera Cruz.
The introduction recently of con-
tainer groupage services directly into
Mexico City presents a "destination"
variable, that should be given consid-
eration.
Basically, however, destination is
not capable of variation and the selec-
tion of transport mode will in the first
place be influenced by that which is
available to the market and this can be
wide ranging or very restricted.
To certain remote areas it may well
be a case of Hobson's Choice, conven-
tional seafreight and nothing else. To
the more sophisticated markets the
possibilities on offer can be extensive
- conventional sea freight, containers,
road trailers, airfreight, LASH
barges, combination sea/air-full load
services, groupage, airfreight consoli-
dation, commodity rates, charter, part
charter-An Aladdin's cave of choice.
But even where choice is wide there
are factors which immediately narrow
that choice and these may perhaps be
briefly summarised under the follow-
ing headings.
The Product: Will its physical
characteristics allow it to be loaded
into containers/road trailers/train
ferry trucks. Are its characteristics
such that it is viable and perhaps
even necessary to ship by air-e.g.
electronic equipment.
Value: What distribution costs can
the product bear. Is the value such as
to allow a wide choice of transport
mode.
Speed:
Are there particular deliv-
ery requirements which override all
other considerations.
JANUARY 1981 9
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