PHYSICAL DISTRIBUTION NOTES
Elements of a Physical Distribution
Physical distribution is the set of activities concerned with efficient
movement of finished goods from the end of the production operation to
the consumer. Physical distribution takes place within numerous
wholesaling and retailing distribution channels, and includes such important decision areas as:
- Customer service,
- Inventory control,
- Materials handling,
- Protective packaging,
- Order procession,
- Transportation,
- Warehouse site selection, and warehousing.
Physical distribution is part of a larger process called “distribution,”
which includes wholesale and retail marketing
as well the physical movement
of products. By storing goods in convenient locations for shipment to
wholesalers and retailers, and by
creating fast, reliable means of moving the goods, business owners can
help assure continued success in a rapidly changing, competitive global
market. The importance of physical distribution is also based on its
relevance to customer satisfaction.
