What you need to know...

  • The processes of moving products from producers to consumers occur with every link in the distribution chain.
  • The major modes of transportation are rail, truck, boat, airplane, and pipeline, each with advantages and disadvantages.
  • Distribution factors to consider include customer satisfaction, distribution costs, and cycle time.
  • Distribution functions are order processing, electronic data interchange (EDI), managing inventory, and materials handling.
  • Distribution facilities include public or private warehouses and distribution centres .
  • Manufacturers coordinate transportation using intermodal containerization, megacarriers, or freight forwarders.
  • Logistics is the process of selecting transportation methods and negotiating with carriers.