The pictures in Fig. 3 show the side of a truck carrying a container and the back of a refrigerated truck. They are owned by Gupta International Transport, a distribution company operating at home and abroad. [Figure 3] Use Fig. 3 to help you to answer the following questions.

Mark scheme

Marking points from the official mark scheme (May/June 2015). The mark or mark type is shown in brackets.

1. [4] (a) Any two reasons explained × 2 marks each
2. goods need to be moved from seller to buyer so that orders can be satisfied
3. raw materials need to be moved from where they are obtained to manufacturers
4. some goods need specialised transport in order to be sent to another country such as container transport/refrigeration
5. some goods need to be transported to bonded warehouses pending payment of duty
6. transport services provide invisible earnings for some countries e.g. shipping services and contribute to the Balance of Payments of those countries as invisible exports
7. transport enables buyers and sellers to meet to do business e.g. air travel
8. has to move goods long distances
9. any other relevant point explained
10. [2] (b) Any two points × 1 mark each or one well explained point × 2 marks
11. the movement of goods from where they are produced to where they are sold/or direct to consumers
12. delivery of goods to many different outlets ready for sale
13. allow reference to channels of distribution
14. any other relevant point
15. [4] (c) Any four points × 1 mark each and up to 2 marks for a well explained point
16. may insufficient business to justify having own transport
17. may not want to spend capital on expensive vehicles
18. may not want to have to organise their own transport systems
19. may want to save the costs of drivers/insurance/repairs/garaging
20. may wish to send goods abroad but does not have the expertise to do so
21. may not have the facilities for refrigerated goods
22. may not have facilities for moving containers
23. Gupta may offer competitive rates for repeat business
24. Gupta specialise in transport and have a known reputation
25. any other relevant point explained
26. [3] (d)(i) Any three reasons × 1 mark each
27. to publicise its services
28. to give information about the company
29. to enable customers to book its services online
30. to give customers its contact details
31. to advertise any job vacancies it might have
32. it may save costs of using other means of communication e.g. telephone
33. it may save costs of using other advertising media
34. any other relevant point
35. [1] (d)(ii) Any one point × 1 mark -
36. to advertise its services
37. to identify that vehicles belong to Gupta
38. any other relevant point
39. [6] (e) Level 2 (4-6 marks) Has discussed whether or not Gupta needs warehousing as part of its business and has given a reasoned opinion.
40. (If a candidate has discussed only one side of the argument, award 4 marks max)
41. Gupta International Transport moves goods both within its own country and also abroad. Some of the goods it moves may have to be stored before transporting. This storage may be by the manufacturer after production especially if buyers have not been found or the transport is not available. Gupta is unlikely to provide storage on a large scale for such goods.
42. Gupta does provide some storage for goods in the form of containers. Containers act as small warehouses and can be stacked in a small space. Gupta is likely to move these containers from the seller's premises where they would be packed, may use at least two means of transport, and deliver them to the buyer's premises where they will be unpacked and stored. Some goods need to be stored pending payment of duty. Gupta may deliver goods to a bonded warehouse. Gupta is unlikely to own a bonded warehouse itself.
43. Gupta operates some refrigerated transport. It is likely to load such cargo from refrigerated storage at the producer's premises. The goods are protected whilst in the truck and then unloaded into storage provided at the destination.
44. Gupta will need some storage for itself. It may need to store its vehicles to protect them when not in use. It will need some storage/warehousing for vehicle parts and the maintenance of its vehicles.
45. Gupta, therefore, is unlikely to need much warehousing and storage. It does not advertise storage facilities on its trucks. This is likely to be provided by other businesses.
46. Level 1 (1-3 marks) Has commented on the use of warehousing by a transport business with/without an opinion.
47. Gupta is a transport business. It moves goods in its own country and to other countries. It stores goods in containers. It stores goods in refrigerated transport. It is unlikely to be a building that acts as a large warehouse.