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Delivery Systems

Delivery Systems. Overview. Why transport is important? Types of delivery system Factors to be considered when choosing a delivery system Modern developments in delivery systems Calculating delivery costs. Why is transport important?. A good transport system is important to business:

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Delivery Systems

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  1. Delivery Systems

  2. Overview • Why transport is important? • Types of delivery system • Factors to be considered when choosing a delivery system • Modern developments in delivery systems • Calculating delivery costs

  3. Why is transport important? A good transport system is important to business: • To deliver raw materials to the manufacturer • To deliver finished goods to retailers • To transport workers to their jobs • To transport goods abroad

  4. Types of delivery systems • Road • Rail • Sea • Air • Pipeline • Canal

  5. Advantages Fast over short distances Door-to-door deliveries (entire country is accessible) Minimum handling Flexible, convenient and cheap – operates 24 hours a day Disadvantages Congestion/poor roads – delays Bad weather – delays Not suitable for bulky goods Slow over long distances Cost of drivers, tax and insurance is high Road

  6. Advantages Fast over long distances Suitable for bulky goods Reliable Cheap for bulky goods Can carry containers and chemicals Not affected by weather and traffic congestion Railways service the main ports – important for firms that export Disadvantages Not flexible – fixed timetable Lot of handling – other methods of transport to and from the station are needed Fixed routes Expensive over short distances Not every city/town is served by a railway station Rail

  7. Lack of integrated rail network throughout the country

  8. Advantages Suitable for bulky goods Large cargos can be carried Cheaper than air Suitable for containers Good facilities at ports Modern ships – large loads Disadvantages Slow over long distances Weather conditions – delays Not flexible – fixed timetable Must link with other forms of transport High insurance costs Sea

  9. Types of ship • Cargo ships (LO-LO) • Ferries (RO-RO) • Tramp ships

  10. Container ships

  11. Advantages: Fast Suitable for perishable goods and goods needed urgently Good safety record Less packing – reduced cost Modern aircraft – large loads Less likelihood of damage/theft Good network of regional airports Disadvantages Expensive Bad weather – delays Must link with other forms of transport Not flexible – fixed timetable Not suitable for bulky goods Air

  12. Advantages: Safe Cheap to maintain Disadvantages: Expensive to install Suitable only for liquids or gases Pipeline

  13. Canal • Man-made waterway • Not commonly used in Ireland, except as a tourist attraction • Used extensively in Europe • Famous canals: Amsterdam, Venice, Suez, Panama

  14. Ship canals may be used to link major cities with sea ports, e.g. Manchester linked with Liverpool

  15. Suez Canal Joins the Red Sea and Mediterranean Sea in Egypt

  16. Panama Canal • Connects the Caribbean Sea to the Pacific Ocean • 50 miles long

  17. Cost Delivery adds to the selling price of goods Reliability The system should be punctual. A delay in delivery could cause a delay in production for “just-in-time” Convenience Delivery should be available when required Speed/Type of goods Very important for perishable goods (e.g. fresh fish) and urgently needed supplies (e.g. medicine) Distance The distance between the buyer and seller can mean a number of transport methods must be used Factors affecting choice of delivery system

  18. Modern Developments in Transport • Containers • Refrigeration • Tachograph • Euro Tunnel • Toll roads/toll bridges • Quality Bus Corridors (QBC)

  19. Large metal boxes of standard size Minimum handling of goods required once sealed in the container Small firms may share a container to reduce costs Containers

  20. Refrigerated containers are used for transporting perishable goods, e.g. meat, fish, etc. Refrigeration

  21. An instrument installed in the cab of a truck/lorry that measures the hours (and speed) driven as well as the breaks taken by the driver Tachograph

  22. The Euro-Tunnel linking Folkestowe in England with Calais in France was opened in 1993 This provides a regular, fast rail link between the UK and mainland Europe Euro-Tunnel

  23. Special lanes that buses can use to provide a quicker and more effective service Public transport becomes more attractive because it will be quicker and more punctual Quality Bus Corridors

  24. Built by private firms who charge a fee for their use Toll roads/Toll bridges

  25. RO-RO & LO-LO

  26. Calculation of Delivery Cost Brady Ltd., a fruit and vegetable wholesaler which operates 325 days a year supplies the following information: • Distance travelled each day is 740km • The diesel van can travel 34km per litre • The cost per litre of diesel is €1.05 • Mark Hennessy, the driver is paid €200 per day • Employer’s PRSI is 12.5% of gross pay • Annual motor tax is €1,300 • Annual motor insurance is €2,275 • Annual motor repairs are €1,300 • Toll charges are €20 per day Calculate the total cost of transport for one day

  27. Solution

  28. Review and Recap • Why transport is important? • What are the different common types of delivery system? • What factors need to be considered when choosing a delivery system? • List and explain four modern developments in delivery systems • Explain how a business calculates delivery costs

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