Physical Distribution

As oil prices rise, so do your distribution costs if you are moving products to the customer. You will need to consider the following:

  1. Should you set up a distribution system to deliver the goods yourself or should you outsource your delivery service. How much does each option cost in money, time and quality of delivery?
  2. How quickly do customers' want to receive the product? And are they prepared to pay more for delivery speed.
  3. Does the product need specialized packaging for certain delivery methods, and if so how much extra cost is involve?
  4. Can customers track where their product is in the delivery process?
  5. How will you deal with returns - do customers pay for this?
  6. How reliable and careful are your delivery personnel whether they are out sourced or in-house?
  7. At a time when many people are getting used to the 'order before midday for next day delivery' offers you will have to make sure that any offer or promise you promote is one that you can deliver consistently.