Question

Define physical distribution and characterize the major functions performed within a physical distribution system

Answer 1

Physical distribution is the group of activities linked to supplying finished product to consumers from the production line. Physical distribution takes into account several forms of product delivery, such as wholesale and retail, and involves essential decision areas such as customer care, inventory, supplies, packaging, order processing, and transport and logistics. You can also hear such processes referred to as delivery, which is used to characterize product promotion and movement.

Material Handling - Its purpose is to move products in and out of stock. This consists of repetitive tasks, which can be done by mechanizing and standardizing. The use of electronic data processing to control conveyor systems, order selection, and other traffic flaws increases performance.

The new mechanized handling systems and protective packaging have increased the standard of customer service while reducing physical delivery costs at the same time. Material handling and packaging services also accelerated the processing of orders and the movement of consignments.

Inventory refers to the amount of goods that a company has on hand and is ready to market to clients. Inventories are held for quickly meeting business demands. Inventory is the link between the customer's orders and the production activity of the enterprise. Infact the whole management of physical distribution rotates around the management of inventories. Inventory management is the foundation of the physical distribution game.

The order processing and the control of inventories are interrelated. The handling of orders is seen as the key to customer service and satisfaction. It involves the receipt, logging, filling and assembly of dispatching goods. The amount of time required from the date the order is received to the date the goods are dispatched must be reasonable and as short as possible.