Distribution Methods (SQA National 5 Business Management): Revision Note

Businesses must choose the most efficient and cost-effective way to move goods from producers to customers

The choice depends on factors such as cost, distance, speed and the type or size of goods being moved

Distribution by road is the most flexible and commonly used method for short- to medium-distance deliveries

Goods can be taken door to door, from factory to warehouse or directly to retailers and customers

It is suitable for perishable, lightweight or smaller loads that need quick delivery

It often involves vans, lorries or specialist refrigerated vehicles

Distribution by rail is suitable for large, heavy or bulk goods, such as raw materials, machinery and building supplies

It is used mainly for long-distance transport within the UK

Goods are carried in freight wagons from one terminal to another and then transferred to road vehicles for final delivery

It is more environmentally friendly for bulk transport, as trains produce lower emissions per tonne moved

Businesses that trade nationally and internationally often use air or sea transport to move goods between countries or across long distances

The choice depends on speed, cost, product type and destination.

This is the fastest method of long-distance transport, used for goods that need to reach markets quickly

It is ideal for high-value, lightweight or perishable products, such as electronics, medicines or fresh food

Cargo is transported from airport to airport, then usually transferred to road vehicles for final delivery

Used by global courier services such as DHL and FedEx and businesses exporting goods to distant markets

This is the most common method for international bulk transport, especially for heavy or non-urgent goods

It is used for products such as oil, vehicles, timber and manufactured goods in containers

Large ships carry thousands of tonnes at once, reducing unit costs

Goods often move from port to port and then by road or rail for final delivery