what activities are involved with physical distribution course hero

How to take care of physical distribution activities?

For the purpose, the systematic structure of organisation should be created to take care of physical distribution activities. Organisation of physical distribution must be well-equipped and properly organised to serve the purpose over time.

What are the functions of physical distribution?

Important physical distribution functions include customer service, order processing, inventory control, transportation and logistics, and packaging and materials. To unlock this lesson you must be a Study.com Member.

How to manage distribution activities effectively and efficiently?

In order to manage distribution activities effectively and efficiently, many companies formulate a permanent committee. The committee consists of a group of people who work jointly for attaining marketing goals. The number of members in committee depends on types of key activities in distribution system.

What are the requirements of physical distribution?

The physical distribution must be customer-oriented. It starts with customer order. Note that order processing affects customer service in two ways – reordering time (interval between two orders) and consistency of delivery time (delivering products within the fixed time).

What is physical distribution?

Physical distribution is responsible for delivering to the customer what is wanted on time and at minimum cost. The objective of distribution management is to design and operate a distribution a system that attains the required level of customer service and does so at least cost.

What is transportation in distribution?

Transportation. Transportation involves the various methods of moving goods outside the firms’ buildings. For most firms, transportation is the single highest cost in distribution usually accounting for 30% to 60% of distribution costs. Transportation adds place value to the product.

What is distribution inventory?

Distribution inventory. Distribution inventory includes all finished goods inventory at any point in the distribution system. In cost terms, it is the second most important item in distribution, accounting for about 25% to 30% of the cost of distribution.

What is materials handling?

Materials handling. Materials handling is the movement and storage of goods inside the distribution center. The type of materials handling equipment used affects the efficiency and cost of operating the distribution center.

What is a waehouse?

Waehouses are used to store inventory. The management of warehouses makes decisions on site selection; number of distribution centers in the system; layout; and methods of receiving, storing and retrieving goods.

Definition

Physical distribution is the group of activities associated with the supply of finished product from the production line to the consumers.

Importance of Physical Distribution

The importance of physical distribution to a company can vary and is typically associated with the type of product and the necessity it has to customer satisfaction.

Why is physical distribution important?

Therefore, an effective coordination of various activities, such as order processing, warehousing, transportation, inventory control, etc., is indispensable to contribute in overall success of marketing strategies.

What is physical distribution?

It is often called as electronic data processing that minimizes possibility of error and omission. Every firm should establish the standard order procedure. The physical distribution must be customer-oriented. It starts with customer order.

Why is warehousing important?

And also, all the production is not sold directly. Warehousing plays an important role for balancing demand and supply. For example, most of the agricultural products are produced seasonally, but have demand throughout the year. It facilitates both continuous production and continuous marketing of the production.

What is transportation in distribution?

Transportation is one of the core components of distribution system. It consists of moving or transferring products from producers to final users. Transportation involves two parties, carriers and shippers. Carriers are those companies that provide transportation facilities to others, such as the Western Railway, Indian Airline, Indian Shipping Companies, and many other private carriers provide transportation services by road, rail, water, air and underground pipes.

What is the term for distribution of products from the point of production to the point of consumption?

To distribute products from the point of production to the point of consumption (consumers) is traditionally called physical distribution . It starts from the factory and reaches the final destinations at the right time, in the right way and form, and at low costs.

What is a household warehouse?

Household Warehouses are temporary in nature owned by household/family to store and protect furniture, paintings, furs, tapestry, etc. 5. Bonded Warehouses are used to store product until payment is made or documents are cleared. They are situated near the Port for export and import business.

What is the function of physical distribution?

Physical distribution function is responsible for completing the marketing transaction once the function of exchange is com­pleted, i.e., buyer and seller come to terms and enter into a con­tract of sale.

Why is physical distribution important?

They consider physical distribution second in importance to product quality as a reason for buying from a certain firm. Better physical distribution services give higher overall customer satisfaction.

Why is there a trade-off between having too much inventory on hand and not enough inventories on hand?

There is a trade-off between having too much inventory on hand, with its incurred additional costs, and not having enough inventories on hand to satisfy shifting customer demand. Another objective for physical distribution is to put in suitable inventory policies so as to bring down the total cost of the physical distribution function.

What are the dimensions of distribution?

There are two dimensions to physical distribution process, the flow of information from the individual customer or organizer to the producer and the flow of materials from the producer to the consumer or the user. A channel is a passageway that allows the happening of certain processes. Marketing is understood to be an exchange process.

How does physical distribution improve customer satisfaction?

If managed effectively, physical distribution can increase customer satisfaction by ensuring reliable, cost-efficient movement of goods through the supply chain. Physical distribution involves the handling and moving of raw materials and finished products from producer to consumer often via an intermediary.

What is planned and integrated management of physical distribution activities?

It can offer a feasible solution striking an optimum balance between physical distribution costs (costs of transport, storage, inventory and order processing) and the customer service level that will be satisfactory to the buyer and also profitable to the seller.

What is the focus of logistics?

A major focus of logistics is physical distribution or marketing logistics, the tasks involved in planning, implementing, and controlling the physical flow of materials, final goods, and related information from points of origin to points of consumption to meet customer requirements at a profit. ADVERTISEMENTS: