Physical distribution
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This document discusses physical supply and distribution, which concerns moving goods from suppliers to manufacturers as inbound movement, and from manufacturers to customers as outbound movement. It also discusses transportation methods companies use to deliver goods to customers, either directly or through intermediaries like wholesalers, warehouses, and transportation companies. Key concepts covered are total cost, customer service through factors like time, dependability, and convenience, and balancing distribution costs with customer service.
Physical distribution
- 1. Cover of this topic. Definition . Object. Order Processing. Transportation. Supply Chain Management.
- 2. Physical Supply goods moving from supplier to manufacturer “inbound” Physical Distribution goods moving from manufacturer to customers “outbound”
- 4. This concerns movement of a finished product/service to customers. In physical distribution, the customer is the final destination of a marketing channel, and the availability of the product/service is a vital part of each channel participant’s marketing effort
- 5. Company may deliver directly to customers Use other companies or individuals to deliver goods Intermediaries wholesalers – agents transportation companies – warehouses
- 6. 1. Total Cost Concept 2. Customer Service Concept a. Time b. Dependability c. Communication d. Convenience e. Accuracy
- 7. 3. Distribution Cost-Service trade offs a. Achieve right balance between them b. Flexibility is important in balancing the cost and service
- 8. a. Verifying Customers’ Credibility b. Checking for any outstanding payment c. Monitoring stock level d. Preparing invoice e. Arranging transporter f. Sending the consignment and information
- 9. i. Suitability or nature of product ii. Affordability iii. Availability iv. Customers’ specifications v. Competitor’s transportation model
- 10. Developed in 1980s. SCM is the process of planning, implementing, and controlling the operation of the supply chain as possible The primary objective of supply chain management is to fulfill customer demand through the most efficient use of resources