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Figure 5.2 The service level demands of marketing on transportation
Part of the final service level factors remains the responsibility of the transportation
functions. The distribution seeks to meet as satisfactorily as possible the requirements
set by marketing. The public image of the company may be further formed by the
person and behaviour of the delivery truck driver.
5.1.2 Transportation risks
A company has many kinds of risks that relate to business, personnel, property
and interest group relations. The material functions stretch from the supplier via
production processes to the customer. Therefore, the risks of the material functions
cannot be unambiguously named. Instead the entirety must be divided. In this concept,
we focus into one part – into the concept of transportation risk.
Transportation risk is a possibility that the product does not arrive at its correct
destination undamaged, in time and in the right amount. The transportation risk
consists of external transportation and the information and material flows that enter
or exit the company. This part of the material management contains several risk types:
• Responsibility: person, property, environment.
• Interruption: own company, customer.
• Environment.
• Property.
• Information: person, information traffic, reliability of the transportation
information.
5.2 Packing
The package is the only thing preventing damages during the whole transportation.
It is also mostly in the hands of the sending company itself. If the company is not
fully aware of the correct way of packing because of the peculiarity etc. of the product,
information can be obtained from packing companies, literature, insurance companies,
packing consultants etc.