5.1 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.
