Organizations require warehousing facilities to bulk store goods. Warehouses allow for quick fulfillment of demand and efficient storage depending on stock levels, finances, and customer locations. Transportation methods are chosen based on costs, control, and ability to change requirements. Road transport is most common in Britain but faces issues like high costs, traffic, and restrictions that limit its effectiveness. Rail transport has decreased as roads face constant pressure.

1. Distribution and Delivery Higher Business Management

2. Distribution and Delivery The successful manufacture of goods is only one part of the overall business Safe and efficient distribution to wholesalers, retailers or delivery to the customer are essential Finished goods, work in progress and raw materials are all held in stock The type of storage depends on: - stock being held - finance available - company policy - the number and location of customers

3. Warehousing Organisations make use of warehousing facilities to bulk store their goods Warehouse space may be owned, leased or rented by the organisation The warehouse may be a centralised function of the organisation or it may be located a distance from the main operations Stocks of finished goods are stored in order to meet demand quickly The main aspects of warehousing are: - design and layout - mechanical handling - transportation

4. amazon.co.uk

5. Design and Layout Ideally warehouses should be located on the ground level Those goods that are moved most frequently should be located in a readily accessible area A stock rotation system should operate to avoid deterioration in quality

6. Mechanical Handling Organisations may use specialist stock handling equipment which can be very costly to purchase However, benefits from it’s use can be substantial Space used and time required to move stock are minimised Pallets are often used in warehouses and are relatively cheap They are easily moved using forklift trucks and enable stock to be stored off the floor

7. Pallets

8. Transportation The decision on which type of transport to use will be based on the needs of the particular business and the costs involved Organisations may own transport, hire transport or use public transport Unreliable Poor value for money Little control No capital investment Cheaper Public Less control No capital investment Ability to change requirements quickly Hired High initial investment continuing running costs Complete control Own DISADVANTAGES ADVANTAGES TYPE

9. Transport and Delivery in Britain During the last decade, British businesses have become more dependent on the roads network for transport and delivery of goods and services Use of railways has decreased and the road system in under constant pressure Choice of transport comes down to the associated costs and benefits… Air transport is the most costly, but may be the only option in some cases (for fast delivery) Large freight carriers have their own fleet of cargo planes Prestwick International Airport in Ayrshire is the largest cargo airport in Scotland

10. Source: www.transtat.dtlr.gov.uk

11. Problems with Road Transport UK government has consistently raised fuel duty and road tax and has a policy of restricting the number of new roads being built Working time regulations also restrict how long a driver can operate for and this also increases costs Some transport companies have found it financially viable to move their businesses to Europe Bad weather, road works and congestion can delay/hinder successful delivery

12. Distribution Mix The route through which a manufacturer distributes products is known as the distribution mix… Distribution Mix The Product Legal Restrictions Manufacturer’s Distribution Capacity Finance Available Reliability of other Organisations

13. Scheduling Making sure that all the factors of production are taken into account and are working harmoniously with each other Raw materials, components, workers, machinery, transport systems and sales outlets have to be organised in such a way as to make sure that the work flows through the stages of production and delays and unused resources are avoided The production function of an organisation has a central role to play and has to maintain close links with all other departments

14. Questions Outline why organisations may need to have warehousing facilities? (3 marks) Describe the factors that determine the method of transport used. (3 marks) Explain the reasons why road and rail transport are not popular methods of transporting goods in this country. ( 3 marks)

15. Solution ?

16. Solution ?

17. Solution ?