Explain why transportation systems should be tailored.

Tailored transportation is the use of different transportation networks and modes based on customer and product characteristics. A firm can meet customer needs at a lower cost by using tailored transportation to provide the appropriate transportation choice based on customer and product characteristics.

Firms must consider customer density and distance from warehouse when designing transportation networks. Firms must consider customer size and location when designing transportation networks. The degree of inventory aggregation and the modes of transportation used in a supply chain network should vary with the demand and value of a product.
Tailoring transportation based on customer density and distance, customer size, or product demand and value allows a supply chain to achieve appropriate responsiveness and cost.