Port Distribution Price (PDP) is a pricing strategy for port cargoes that is intended to apply when goods arrive at the port from a supplier and are purchased by a distributor or buyer. It can be thought of as the "wholesale price" at the port, as the distributor or buyer can sell or use the goods further for a profit.
The port distribution price has many advantages for the various players in the supply chain. Suppliers can price according to market demand and costs as delivery of goods is centralized. This can lead to increased revenue. Distributors or buyers can benefit from the supplier's wholesale price and they can make higher profits by re-selling. Also, port distribution prices can reduce the impact of market fluctuations on costs and availability.
What industries are port distribution pricing widely used in?
Port Distribution Pricing is useful for many industries. For example, the oil and chemicals industry requires a lot of logistics and distribution, so port distribution pricing is a very common pricing system in that industry. Other industries, such as agriculture, cold foods, and medical devices, can also use port distribution pricing models to optimize their supply chains. In a globalized economy, port distribution pricing not only improves profitability and efficiency, but also opens up broader markets for each industry.