Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
Scribd Logo
Upload

Welcome to Scribd!

  • 930 views

    Physical Distribution

    Uploaded by

    richaguptarocks
    Physical distribution involves planning, implementing, and controlling the movement of goods from production to consumption through activities like transportation, warehousing, inventory management, and order processing. The objectives are to get the right goods to customers at the right time for the lowest cost while maximizing profits and customer satisfaction. It analyzes customer needs and competitors to establish efficient distribution standards and systems.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd

    Physical Distribution

    Uploaded by

    richaguptarocks
    930 views21 pages
    Physical distribution involves planning, implementing, and controlling the movement of goods from production to consumption through activities like transportation, warehousing, inventory management, and order processing. The objectives are to get the right goods to customers at the right time for the lowest cost while maximizing profits and customer satisfaction. It analyzes customer needs and competitors to establish efficient distribution standards and systems.

    Original Title

    physical distribution

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Physical distribution involves planning, implementing, and controlling the movement of goods from production to consumption through activities like transportation, warehousing, inventory management, and order processing. The objectives are to get the right goods to customers at the right time for the lowest cost while maximizing profits and customer satisfaction. It analyzes customer needs and competitors to establish efficient distribution standards and systems.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    930 views21 pages

    Physical Distribution

    Uploaded by

    richaguptarocks
    Physical distribution involves planning, implementing, and controlling the movement of goods from production to consumption through activities like transportation, warehousing, inventory management, and order processing. The objectives are to get the right goods to customers at the right time for the lowest cost while maximizing profits and customer satisfaction. It analyzes customer needs and competitors to establish efficient distribution standards and systems.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 21

     Physical distribution includes all those activities that

    concerns the handling and the movement of goods from the


    place of production to the place of consumption i.e. It
    includes basically:
    a) Planning the infrastructure to meet demand
    b) Then implementing and controlling the physical flow of
    materials and final goods from point of origin to point of use.
    c) In order to meet customer requirements at profit.
    It is also known as Marketing logistics
    or public distribution system or traffic management.
    “Physical distribution involves planning, implementing
    and controlling the physical flows of material and
    final goods from the point of origin to point of use or
    consumption to meet customer needs at profit.”
    -PHILIP KOTLER

    “Physical distribution involves the management of


    physical flow of products and establishment and
    operation of flow systems.”
    - WILLIAM J.STANTON
     Supply chain – complete sequence of suppliers
    that contribute to creating a good or service and
    delivering it to business users and final
    consumers.
     Logistics – the activities involved in controlling
    the flow of goods, services, and information
    among members of the supply chain.
     Physical Distribution – the activities aimed at
    efficiently moving finished goods from the
    production line to the consumer or business
    buyer.
    OBJECTIVES OF PHYSICAL
    DISTRIBUTION

    The prime objective of every firm as a market


    logistics objective is “getting the right goods to
    the right place at the right time for the least
    cost.”i.e. Its objectives are:
    a) Maximizing profits
    b) Giving better customer service
    c) Reducing cost
    d) Customer satisfaction
    e) Enhancing sales
    To achieve the above stated objectives a company
    must take following steps:
    a) Analyzing customer needs
    b) Analyzing the competitors
    - analyzing the importance of service outputs
    - analyzing competitors service standards
    c) Deciding its own standard
    The marketing logistics
    system should be such that reduce the cost. i.e
    M=T+FW+VW+S
    COMPONENTS OF PHYSICAL
    DISTRIBUTION
    The following are the components of Physical distribution:
    a) Order Processing
    b) Inventory Management
    - Warehousing
    - Inventory control
    c) Transportation
    d) Material handling
    5% Order Processing
    Inventory 5% Administration
    Carrying 21%

    26% 43% Transportation


    Warehousing
    1.ORDER PROCESSING
    Order processing includes the activities of receiving, recording, filling and assembling
    orders for shipment. Each customers expect that his order should be filled in time
    Without an inordinate delay and the goods must match perfectly to his order
    specifications. It involves following steps:
    a) Communication of order to marketing department
    b) Order processing starts which involve
    - Credit check
    - Investment check
    - Order for dispatch
    - Replenishment of stock
    - Intimation to customers
    - Despatch of goods
    - Collection of payments

    Basically order processing have dual impact on consumer


    service level:
    c) Order time
    d) Consistency and uniformity of delivery time
    2.INVENTORY
    MANAGEMENT
    Inventory management means the management of products
    on the move. It is the basic task of planning and controlling
    finished goods after they have brought from production
    centers and before their delivery to users. Basically two
    aspects are included under this:
    - Warehousing
    - Inventory control
    WAREHOUSING
    Warehousing is an act of storing and assorting the finished
    goods so as to create maximum time utility at minimum
    cost .So basically warehousing involves two functions:
    a) Movement of finished goods
    b) Storage of finished goods
    The types of warehouse is as follows:

    warehouse

    warehouse

    Distribution
    Distribution warehouse
    warehouse Storage
    Storage warehouse
    warehouse Automated
    Automated warehouse
    warehouse
    Warehouse Location
    Regarding the location of the firm, it has two options:
    a) Centralized location
    Warehouse
    Warehouse

    Customer Customer Customer

    b) Decentralized location
    Warehouse

    Field Warehouse
    INVENTORY CONTROL
    Inventory implies the stock of goods held over a period of time
    for meeting the customer needs both business and final. It act
    as a link between the orders of the customers and production
    cycle of the firm. There are various techniques which are
    generally used to control inventory in the firm. These are:
    a) Determination of stock level
    b) Economic order quantity
    c) ABC analysis
    d) JIT system
    3.MATERIAL HANDELING
    Material handling is such component of physical distribution
    which is generally taken at every stage of logistics namely
    during production,storage,transport and packaging process.
    From marketing point of view it stands for the product
    movement after it gets out from manufacturing plant but
    before it is loaded on the transport mode to the destination of
    consumer. The following methods are used for material
    handling:

    Material handlin g metho ds

    Material handling methods

    Manual
    Manual Material
    Material Mechanical
    Mechanical Material
    Material Automatic
    Automatic Material
    Material
    handling
    handling handling
    handling handling
    handling
    TRANSPORTATION
    Transportation is the last component of physical
    distribution. It is basically concerned with the
    movement of products from warehouses to
    customer destinations. It involves loading and
    unloading of products and transshipment between
    the places of dispatch and places of arrival.

    Carriers
    Carriers

    Private carriers Contract carriers Common


    Common carriers
    carriers
    0.3% Airways
    5

    15.8% Waterways
    4

    19.9% Pipelines
    3

    26.1% Trucks
    2

    1 Railroads 37.9%

    0 10 20 30 40
    Mode Speed Depend- Frequency Available- Flexibility Cost
    ability in of ity in in
    Meeting Shipments Different Handling
    Schedules Locations

    Rail Average Average Low Low High Average


    Water Very slow Average Very low Limited Very high Very low
    Truck Fast High High Very Average High
    extensive
    Pipeline Slow High High Very Very low Low
    limited
    Air Very fast High Average Average Low Very high

    You might also like