For any business, the cost of transportation is normally the largest singleitem in the overall cost of physical distribution. It doesn't necessarilyfollow, though, that a manufacturer should simply pick the cheapestavailable form of transportation. Many companies today use the totalphysical distribution concept, an approach that involves maximizing the10 efficiency of physical distribution activities while minimizing their cost.Often, this means that the company will make cost tradeoffs between thevarious physical distribution activities. For instance, air freight may bemuch more expensive than rail transport, but a national manufacturermight use air freight to ship everything from a single warehouse and thus15 avoid the greater expense of maintaining several warehouses.When a firm chooses a type of transportation, it has to bear in mind itsother marketing concerns-storage, financing, sales, inventory size, and thelike. Transportation, in fact, can be an especially important sales tool. If thefirm can supply its customers' needs more quickly and reliably than its20 competitors do, it will have a vital advantage: so it may be more profitablein the long rub to pay higher transportation costs, rather than risk the loss offuture sales. In addition, speedy delivery is crucial, in same industries. Amail-order distributor sending fruit from Oregon to Pennsylvania needs thepromptness of air freight. On the other hand, a manufacturer shipping25 lingerie from New York to Massachusetts may be perfectly satisfied withslower (and cheaper) truck or rail transport.