PRODUCT DISTRIBUTION: THE BASICS

RESUMEN

NELSON ENRIQUE CUADROS BENAVIDES

PRODUCT DISTRIBUTION: THE BASICS

JUAN CAMILO AREVALO PARRA

INSTRUCTOR

SENA

TECNOLOGIA EN GESTION LOGISTICA

BUCARAMANGA, SANTANDER

2018

PRODUCT DISTRIBUTION: THE BASICS

Summary

Transporting products is an essential activity in the world of commerce; whether it is a large or small company, it is vital to know how to choose the correct transport mode that meets the needs of the company and customers.

For this, there are factors that must be analyzed for the correct choice of mode of transport; these factors are budget, speed of transport, type of product (perishable, dangerous or high cost) packaging, labeling in order to conserve the quantity of the merchandise, meet the established standards, and ensure successful delivery.

Road transport is economical, but is subject to delays that may occur along the route and has height and weight restrictions.

The rail transport is fast and more careful with the environment and is not exposed to congestion or delays, but can be very expensive, for the shipment of products by this means; it is advisable to buy an FOB ticket

Air transport is suitable for shipping products over long distances and in a short time, it is expensive and has some restrictions. In this medium, it is loaded by kilograms and costs are charged management fees, surcharges for fuel and risks, customs duties and security and VAT rates if required. To avoid all these procedures we can hire a cargo agent that organizes all the aforementioned details and will quote based on it. It is important to ensure that the company that is hired has the experience in the countries that are marketing our products, as well as that it is legally constituted in the freight service industry and is covered by limited liability insurance; all this can be verified on the BIFA website.

Maritime transport is relatively economical if large cargo volumes are shipped; its disadvantages are the slow delivery and its few ports from which the products must be moved to a place of delivery that is very far away. Maritime cargo ships are made up of container ships that transport 20- or 40-foot containers that are rented for loose cargo.

Bulk carrier’s transport unpackaged products such as grains or coal.

Oil tankers, as the name implies, transports crude oil to the refineries where it will be processed.

Rodent’s roll-on (ro-ros) transports automotive vehicles of different characteristics, trucks and machinery on wheels.

There are two types of shipments:

1) In railroad ships: fixed routes and schedules

2)  Vagrant ships: they operate according to the demand of shipments.

Courier service are fast and safe, cost-effective over short distances and delivery products with a weight limit.

GLOSARIO

Customs tariffs: Son las tarifas que gravan las mercancías en la importación, la exportación y el tránsito, así como los impuestos fiscales, las disposiciones complementarias y los índices correspondientes.

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