Choice of Transportation and Documents used in Transportation in Marketing

Content

I. Choice of transportation

ii. Document used in transportation in marketing.      

Choice of Transportation

Marketing firms decision on the choice of transportation to make use of in transporting their products to the end-users is influenced by the following factors:

i. The nature of the product: Perishability, durability, storage, the fragility of the product.

ii. The product variables: Weight, kilogrammes, packaging, heaviness decide the choice of transportation. E.g, industrial plants and machinery/equipment are usually transported by either rail or water.

iii. Cost advantage: Marketing firms also consider cost variables as to cheapness of carrying a product. For instance, it is better to carry several tons of cement from point of manufacturing through the railway to a far distance place than using a trailer. It is less expensive compared to the use of trailers.

iv. Nearness to market: When the market or the location of the ultimate consumer is very close to the producer, this most often determine the mode of transport use.

v. Location of the company: When the company is not too far to the market or not in remote areas dues to raw materials as an important factor that determines the location of a company, organisations make use of best transportation that is cheaper and convenient.

vi. Company Variables: This relates to the financial capacity of manufacturers, size, expertise and desire for managerial control.

vii. Intermediary Variables: This relates to cost, availability and kind of services provided.

viii. Behavioural Variables: This relates to collective bargaining and behavioural pattern of consumer.

Documents used in Transportation in Marketing

Transport documents are contracts for carriage of goods exchanged between different actors. They differ depending on the method of carriage used.

Bill of Lading

The Bill of Lading (B/L) is a contract for maritime carriage that specifies the taking of responsibility, or the loading, of goods by the carrier. It contains detailed information on the goods, the boat and the port of destination.

It is a document of title to the goods, that gives the right to their ownership. The carrier commits to delivering the goods to the person who holds the bill of lading and who will come and get the goods. It is a transferable title: the originals may be transferred by endorsement.

Sea Waybill

The Sea Waybill documents only the carriage contract signed by the shipper and the maritime transport line and represents the receipt of the goods. It contains detailed information on the port of embarkation, the port of destination, the name of the ship, the name of the shipper, the name and the address of the recipient.

Different from the Maritime Bill of Lading, the Sea Waybill is not a document of title to the goods and is non-transferable.

Consignment Note (CMR)

The CMR consignment note certifies the carrier’s taking of responsibility for the merchandise and shipping upon signature by the carrier. It documents a carriage contract of the goods that exist independently of them. It must be established in the form specified by the “Convention on the Contract for the International Carriage of Goods by Road” (CMR).

Air Waybill (AWB)

The Air Waybill constitutes the proof of the carriage contract, the taking of responsibility for the goods and the documentation of the prices. It certifies the effective shipment once the carrier has entered the date and number of the flight. It is standardized by the IATA (International Air Transport Association), that moreover, develops solutions for the dematerialization of AWB’s.

In the case of grouping, when goods are gathered with other goods to complete a load for the same destination, the forwarder that groups the goods becomes legally, with respect to the carrier, the shipper and thus the drafter of the parent air waybill, referred to as the Master Air Waybill (MAWB). A “daughter” air waybill referred to as the House Air Waybill (HAWB) documents the contract between the forwarder and each of the shippers included in a grouping.

Rail Consignment Note (CIM)

The Rail Consignment Note (CIM) or International Consignment Note is a document governed by the 1980 Convention concerning International Carriage by Rail (COTIF-CIM). It is issued by the carrier and is considered as the rail carriage contract. This document is non-transferable and is not requested upon arrival.

Test: Marketing SSS2 First Term Final Assessment

Top of Form

1. Does transportation generate employment?

True

False

2. Does transportation never help in exchange for foreign currency?

True

False

3. Does transportation promote international trade?

True

False

4. Transportation can be described as the physical movements of products from places of manufacturing to other channels of distribution to get to the hands of the ultimate users?

True

False

5. Transportation does not promote transnational and cultural relationships and languages?

True

False

6. Motor transport is not as reliable as rail transport?

True

False

7. _______ involves trains that carry heavy plants and machinery?

road transport

rail transport

sea transport

cargo transport

8. ________ is the transport or movement of people, animals or goods from one location to another location on land?

road transport

rail transport

sea transport

land transport

9. _________ is the safest form of transport?

road transport

rail transport

sea transport

cargo transport

10. _________ include vehicles such as trailers, buses, cars,etc. that carry products from one place to another?

road transport

rail transport

sea transport

cargo transport

11. . Air transport is the fastest mode of transport?

True

False

12. Air transport is the riskiest form of transport?

True

False

13. . __________ include the aeroplanes, cargo planes, helicopters, jets?

road transport

rail transport

sea transport

air transport

14. Do the aircraft have a small carrying capacity?

True

False

15. Air transport is unreliable as it depends on the weather forecast?

True

False

16. Maintenance cost in rail and road transport is quite high but the maintenance cost of water transport is quite less?

True

False

17. Does water transport include the speed boat, canoes, ships, vehicles, and tricycle?

True

False

18. Water transport is riskier as compared to other means because there is always the danger of sinking ships or boats?

True

False

19. Heavy and bulky goods can be transported easily at little cost through water transport?

True

False

20. India’s foreign trade is mainly dependent on water transport?

True

False

21. __________ certifies the effective shipment once the carrier has entered the date and number of the flight?

sea waybill

bill of landing

rail consignment note

air waybill

22. _____________ is a contract for maritime carriage that specifies the taking of responsibility, or the loading, of goods by the carrier?

sea waybill

bill of landing

rail consignment note

consignment note

23. __________ certifies the carrier’s taking of responsibility for the merchandise and shipping upon signature by the carrier?

sea waybill

bill of landing

rail consignment note

consignment note

24. __________ documents only the carriage contract signed by the shipper and the maritime transport line and represents the receipt of the goods?

sea waybill

bill of landing

rail consignment note

consignment note

25. ___________ is issued by the carrier and is considered as the rail carriage contract?

sea waybill

bill of landing

rail consignment note

consignment note