What is Physical Distribution
Physical distribution, also known as logistics or supply chain management, refers to the process of planning, implementing, and controlling the flow of goods from the point of origin to the point of consumption. It includes all the activities and systems required to move a product from the manufacturer to the end customer, including transportation, warehousing, and distribution.
Effective physical distribution is critical to the success of a company, as it can impact the cost, speed, and reliability of the product's delivery to customers. Poor physical distribution can lead to delays, lost or damaged goods, and dissatisfied customers.
Some key components of physical distribution include:
- Transportation: the means by which goods are moved from one location to another, such as by truck, train, plane, or ship
- Warehousing: the storage of goods in a facility until they are needed for distribution
- Inventory management: the process of tracking and managing the flow of goods and materials through the supply chain
- Distribution: the process of making the product available to customers through various channels, such as retail stores or online marketplaces
Physical distribution can be a complex and challenging task, as it involves coordinating the activities of multiple parties and systems. However, by carefully planning and managing the physical distribution process, a company can ensure that its products are delivered to customers in a timely, cost-effective, and reliable manner.