Managing physical distribution is very vital function in the marketing of goods and services. The physical distribution considers many sales distribution channels, such as wholesale and retail, and includes significant decision areas like consumer service, inventory, materials, packaging, order processing, and transportation and logistics.
Functions of Physical Distribution
The key functions within the physical distribution system are:
- Customer service
- Order processing
- Inventory control
- Transportation and logistics
- Packaging and materials
The basic elements of specific functions that make up physical distribution include:
(i) Materials handling;
(ii) Inventory planning and control;
(iii) Order processing;
(iv) Transportation; and
(v) A communication system to integrate the physical distribution process.