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This lesson on Physical Distribution includes the nature and objectives of the Physical Distribution and also differentiated with Marketing Channels. This logistics management integrates parts of the managerial functions of warehousing, transportation and organizational responsibility of the marketer in the processing and inventory of orders.

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  1. 1. LESSON OBJECTIVES 1. Define Physical Distribution; Physical Distribution Management 2. Enumerate the 5 major transportation forms that move products 3. Discuss the objectives of Physical Distribution 4. Explain the elements of an efficient Physical Distribution 5. Appreciate the functions of physical distribution
  2. 2. Meaning of Physical Distribution Physical distribution encompasses all the activities involved with the physical movement of products through distribution channels. Specifically, physical distribution includes all activities related to the storage, handling, and movement of goods to make these goods available when and where customers demand them
  3. 3. Supplies Parts Raw Materials THE FIRM WAREHOUSES WHOLESALERS RETAILERS CONSUMERS On-time delivery; Willingness to meet customers’ emergency requirements; Careful handling of merchandise; Willingness to take back defective merchandise re-supply quickly; Willingness to carry inventory for customers.
  4. 4. Physical Distribution Management (Logistics) It is the movement of finished goods from their point of production into the hands of consumers. Physical distribution activities, as a result, focus on managing inventories of semi-finished and finished goods, warehousing these goods enroute to middlemen, handling these goods within production and warehousing facilities, and arranging and managing their transportation through the channel.
  5. 5. Objectives of Physical Distribution 1. to deliver at least 95% of orders within 3-days of order receipt 2. to fill orders with 100% accuracy 3. to answer customers' questions about order status within 30 minutes 4. ensure damage to merchandise in-transit is not greater than 1% 5. turn around damaged merchandise within 24 hours.
  6. 6. 5 Major Transportation Forms that Move Products
  7. 7. Elements of Efficient Physical Distribution 1. Inventory planning and control- proper handling of stocks 2. Transportation- shipping of products on time and right place 3. Warehousing- keeping of goods until they are delivered 4. Order Processing- receiving, recording, filling and assembling orders for shipment 5. Materials handling- moving goods over short distances into and out of warehouse and manufacturing houses
  8. 8. Assignment • Be able to cut any current event(s) from newspaper or magazines that show the specific movement of goods using the various transport forms • Present your discovery in the class