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Physical distribution

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Physical distribution

  1. 1. Cover of this topic. Definition . Object. Order Processing. Transportation. Supply Chain Management.
  2. 2.  Physical Supply  goods moving from supplier to manufacturer  “inbound” Physical Distribution  goods moving from manufacturer to customers  “outbound”
  3. 3.  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
  4. 4.  Company may deliver directly to customers Use other companies or individuals to deliver goods Intermediaries  wholesalers – agents  transportation companies – warehouses
  5. 5. 1. Total Cost Concept2. Customer Service Concept a. Time b. Dependability c. Communication d. Convenience e. Accuracy
  6. 6. 3. Distribution Cost-Service trade offs a. Achieve right balance between them b. Flexibility is important in balancing the cost and service
  7. 7. a. Verifying Customers’ Credibilityb. Checking for any outstanding paymentc. Monitoring stock leveld. Preparing invoicee. Arranging transporterf. Sending the consignment and information
  8. 8. i. Suitability or nature of productii. Affordabilityiii. Availabilityiv. Customers’ specificationsv. Competitor’s transportation model
  9. 9.  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
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