This lesson on Physical Distribution includes the nature and objectives of the Physical Distribution and also differentiated with Marketing Channels. This logistics management integrates parts of the managerial functions of warehousing, transportation and organizational responsibility of the marketer in the processing and inventory of orders.

2. LESSON OBJECTIVES
1. Define Physical Distribution;
Physical Distribution
Management
2. Enumerate the 5 major
transportation forms that
move products
3. Discuss the objectives of
Physical Distribution
4. Explain the elements of an
efficient Physical Distribution
5. Appreciate the functions of
physical distribution

4. Meaning of Physical
Distribution
Physical distribution encompasses
all the activities involved with the
physical movement of products
through distribution channels.
Specifically, physical distribution
includes all activities related to
the storage, handling, and
movement of goods to make
these goods available when and
where customers demand them

5. Supplies
Parts
Raw
Materials
THE
FIRM
WAREHOUSES
WHOLESALERS
RETAILERS
CONSUMERS
On-time delivery;
Willingness to meet customers’ emergency
requirements;
Careful handling of merchandise;
Willingness to take back defective merchandise
re-supply quickly;
Willingness to carry inventory for customers.

6. Physical Distribution
Management (Logistics)
It is the movement of finished goods from their
point of production into the hands of
consumers. Physical distribution activities, as
a result, focus on managing inventories of
semi-finished and finished goods, warehousing
these goods enroute to middlemen, handling
these goods within production and
warehousing facilities, and arranging and
managing their transportation through the
channel.

7. Objectives of Physical Distribution
1. to deliver at least 95% of orders
within 3-days of order receipt
2. to fill orders with 100% accuracy
3. to answer customers' questions
about order status within 30 minutes
4. ensure damage to merchandise
in-transit is not greater than 1%
5. turn around damaged
merchandise within 24 hours.

8. 5 Major Transportation Forms that
Move Products

9. Elements of Efficient
Physical Distribution
1. Inventory planning and control-
proper handling of stocks
2. Transportation- shipping of products
on time and right place
3. Warehousing- keeping of goods until
they are delivered
4. Order Processing- receiving,
recording, filling and assembling orders
for shipment
5. Materials handling- moving goods
over short distances into and out of
warehouse and manufacturing houses

10. Assignment
• Be able to cut any current event(s) from
newspaper or magazines that show the
specific movement of goods using the various
transport forms
• Present your discovery in the class