Free «Essay Question: Freight Transportation Systems and Non-Food Goods Sold Online» Essay
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Factors to Take into Account When Selecting the Means of Transportation
There are some factors that a freight forwarder must consider before determining what freight transportation system he should use to move the freight either from Asia or from Europe to the United States. It is important to note that railway and land transportation is not applicable since both continents i.e. Asia and Europe are separated from the U.S. by water.
- The cost of service
The cost of shipping always adds the value of the product in the end. Hence, a freight forwarder should choose a transportation system which is more considerable to ensure that the cost of cargo is not tempered with at a higher rate. Railway transport is considerably cheap for the transportation of heavy and bulky cargo. (Ioannou, 2008) However, there is no rail connection either from the U.S. to Europe or from Asia to the U.S. Therefore, the other convenient and considerable cheap mode of transportation will be water transportation, which is suitable to carry cumbersome and bulky goods over long distances. Although air travel system seems to serve the same purposes, it is still the most expensive means of transport.
- Speed of transportation system
Nonetheless, air transpiration is the quickest mode and is suitable to carry perishable, light, and valuable goods. If the freight being transported is required urgently by the recipient, then this is the most convenient method. However, the freight forwarder must be aware that it will be an expensive means. Water transportation is very slow thus it is unsuitable where time is an important factor.
- Characteristics of freight/ goods
The size and weight of load play a crucial role in determining the mode of transportation. Land and air transport cater for mainly light and small shipments, while rail and shipping cater for massive loads. Since the Atlantic Ocean is the divider between the U.S. and the continents Asia and Europe, sea transportation suits shipping of freight since it can be used to carry heavy and bulk cargo.
Characteristics of Non-Food Goods Sold Online
- Delay between purchase and consumption
While a lot of goods purchased physically in stores are consumed almost immediately after purchase, online purchases of physical goods are accompanied with delays of delivery, when it could take hours, days or even weeks to get the ordered items.
- The geography of markets
With online markets that do not have geographical boundaries, the customers can order products from different locations and their order be delivered still.
- Tax treatment
One advantage that many online transactions have over sales in physical stores is the absence of transaction tax.
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However, there are various challenges that face distribution of non-food goods purchased online. It is the obligation of the retail logistic manager to know how to deal with them. For instance, one of the critical challenges faced by the distribution of online non-food goods is time (Dixon, 2010). When a customer orders some products, the expectation of the former is that the latter will be delivered on time; however, the distributors are not always on this time, which could be because of lack of dedication they put in their work. Indeed, they may not have a driving force to deliver the goods as soon as possible. Another reason for the delays could be slow transportation means, when they faced challenges such as traffic or vehicle breakdown. Besides, what could cause slow and late delivery is the situation when distributors do not have the right address of the customer, or they are not conversant with the location where they are supposed to deliver the products to the client. For a manager, it would be prudent to hire distributors who are conversant with different areas and train the staff on time management. This will ensure that the customers are satisfied with the services provided.