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Physical distribution and its channels
PRESENTED BY
PRIYA BAMBALE
1
Physical distribution
2
What is Physical distribution?
Physical distribution is responsible for
delivering to the customer what I wanted on
time & minimum cost.
3
Physical distribution
The objective of distribution management
is to design & operate a distribution system
that attains the required level of customer
services & does so at least cost.
4
Physical distribution
Types
• Physical supply
Goods moving from supplier to manufacturer
“Inbound”
• Physical distribution
Goods moving from manufacturer to customer
“Outbound”
5
Physical distribution
Physical Manufacturing Physical distribution
Supply Planning & Control
DOMINANT FLOW OF PRODUCT AND SERVICES
DOMINANT FLOW OF DEMAND AND DESIGN INFORMATION
S
U
P
P
L
I
E
R
MANUFACTURER
DISTRIBUTION
SYSTEM
C
U
S
T
O
M
E
R
6
Key elements of Physical distribution
• Order processing
• Production
• Warehousing
• Inventory Management
• Transportation
• Material Handling
7
Key elements of Physical distribution
8
Activity in Physical distribution in System
9
Channels of distribution
A channel distribution is one or more
companies or individuals who participate in
the flow of goods or services from the
producers to final customer.
10
Channels of distribution
Types
• Company may deliver directly to customers
• Use other companies or individuals to delivers
good
• Intermediaries
Wholesalers -Agents
Transportation companies -Warehouses
11
Channels of distribution
Producer Wholesaler Retailer
12
Producer Retailer Consumer
Producer Consumer
Consumer
13

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Physical distribution and its channels