By moving goods from locations where they are made to locations where they are required, transportation provides the important service of joining a company to its producers and customers. It is an indispensable activity in the logistics, which supports the economic utilities of place and time.
Transportation is blamed for a company’s lack of ability to decently serve potential customers. Late deliveries are a source of service problems and complaints. Products often incur damage while in transit and warehouse workers sometimes load the wrong goods at location of shipping. Such over or short shipments frustrate customers and also leads to discontentment and bias their decision to buy from a competitive agency for purchases made in future.
However, if a company performs punctually with full and unmarred deliveries regularly, this instills customer confidence and gains business for the company. When a company instills confidence in through its excellent service performance, it is bound to make customers reluctant to fall prey to competitors’ bids to carry away business through nasty promotions and aggressive pricing policies.
Aside from its service, transportation also represents a significant cost for the business. The cost of transportation determines whether a business transaction results in a profit or a loss for the business. However shipping an order overseas via air is much faster than transportation by ship; it costs 20 times more. Such a cost difference do not sometimes justify the use of the faster transportation the goods. Supply chain managers should therefore be really careful in calculating cost goods when determining how to move product in the most economical manner.
The contribution of transportation is very big to transport commodities to nooks and crannies of the world in a very little time. If the development of transportation would not have been made, market would have been limited to local areas and production would be limited only to meet local needs only. As a result, economy of each country would have remained in an undeveloped condition.
The functions of transportation companies in marketing can be discussed as follows:
Physical Supply Of Products:
Transportation companies easily carries finished goods to the hands of those who require them. This significantly increases gross sales of goods. In effect, transport is such a key of marketing, which helps in taking goods to the distributed consumers at different locations, narrow-downs the gap between producers and consumers and helps to distribute goods to the consumers at minimum cost and time.
Transportation companies specialize on geographical or regional basis. Transportation costs highly affect localization of industries. Production of goods centers at places where the environment is the best and production cost is minimum. This makes possible the maximum utilization of local resources, which is both economical and social necessity.
Stabilization In Price
Transport companies in Morocco help to bring stability in prices of different products. It transports goods from richly supplied places to scarcely supplied locations. This way it helps in the establishment of coordination among demand and supply and thus bringing stability in prices.
Besides economic importance, transportation also has social, political and cultural importance. It establishes utility by narrowing geographical disparities. It consolidates social and cultural unity and strengthens national integration. It helps to establish sound working relationship among foreign countries. Transportation also helps widen knowledge and skill in different sectors.