Thursday, January 13, 2022

Physical distribution management

Physical distribution is an important marketing function refers to the movement of finished goods from a company’s distribution and fulfillment network to the end user.

Physical distribution is the science of Business Logistics that has been described by Philip Kotler as "planning, implementing and controlling the process of physical flows of materials and final products, from point of origin to point of use, to meet customer's needs at a profit.

Physical distribution management is the term describing the management and control integration of two or more activities for the purpose of planning, implementing and controlling the efficient flow of raw materials, in process inventory, and finished goods from point of origin to point of consumption.

The various element of activities in physical distribution system including but are not limited to, customer service, demand forecasting, distribution communications, inventory control, material handling, order handling, parts and service support, plant and warehouse site selection, procurement, packaging, return goods handling, salvage and scrap disposal, storage and transportation.

The physical distribution function of a firm provides the place and time dimensions which contribute a basic element of marketing mix. Physical distribution is important because it is linked to three critical business objectives that impact the company bottom line: faster shipping, reduced logistics costs, and high customer satisfaction.
Physical distribution management

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