Physical distribution links a business and its customers. Whats the difference between distribution management and. Physical distribution refers to the processes through which a business moves a product through distribution channels and gets it to its customers. The distribution channel includes both the wholesale. It is a highly complex process, and one of the most. In this lesson, well be looking at physical distribution and the.
Therefore, an effective coordination of various activities, such as order processing, warehousing, transportation, inventory control, etc. Inventory management is the heart of the game of physical distribution. An overview of transport and logistics management education not much work has been done on t ransport and logistics management education across the globe in general and in nigeria in particular. The traditional approach of management treats all these components as independent of each other. Supply chain management has broader objectives and actually encompasses logistics management. There are three types of carriers which an organisation might. The key to efficiently managing the physical distribution of building. At its simplest, the subject of physical distribution and logistics can be defined as having the right quantity of an item, in the right place, at the right time. Pdf physical distribution costs in construction supply chains. Globalization, trade and freight distribution are interrelated and concern a mobility scale that spans regions, nations and often continents. In order to achieve high performance, it is necessary to know which operational factors are critical for success and which are less important. Pdf physical distribution costs in construction supply. In the preparation of their manuscripts, authors are asked to follow the ijpdlm manuscript requirements. Physical distribution flexibility in logistics systems and.
In essence, physical distribution management pdm involves controlling the movement of materials and goods from their source to their destination. Part of logistics management, physical distribution is concerned with the transporting of merchandise, raw materials, or byproducts, such as hazardous waste. Physical distribution has two broad objectives viz. Physical distribution is thus, management of the physical flow of products and management and operation of the flow system. Basic model of the flexibility these capabilities are important to strategic responses because they are visible to. The methods and routes to be adopted to bring the products to the. Only then can management focus attention on those factors that have a strong effect on performance. To achieve minimum inventory level and speedier transportation. Transportation management professionals work in the private sector, managing the transportation and distribution networks of businesses, as well as for local, state and federal governments in a. Physical distribution management pdm caters to the actual movement of products through the various channels of distribution. Marketing managers undertake an inventory planning to develop adequate assortments of products for the target market and also try to control the costs involved in obtaining and maintaining inventory.
Distribution management involves inventory management, purchasing, receiving the inbound loads suppliers, storing the product into storage facility, reteriving product from storage when order arrives. In physical distribution, the customer is the final destination of a marketing channel, and the availability of the. Physical supply flexibility physical distribution flexibility demand management. Producers produce goods and finally make them ready for the market. It also includes several critical decision making areas like customer service, materials, inventory, packaging of the finished product, order processing and fulfilment. Physical distribution and logistics marketing management. Private carriers x transport goods for an individual business. Role of channel of distribution and physical distribution. The objective of this study is to provide insights into the tradeoffs of physical distribution cost patterns in construction supply chains by modelling and measuring these costs. Like bank, transport institutions, warehousing etc.
Role of channel of distribution and physical distribution of goods. Pdf international journal of physical distribution. Physical distribution is the collective term for series of interrelated functions primarily transportation. In otber words, the decision regarding say, transportation can. Chapter 7 trade, logistics and freight distribution. The distribution channel includes both the wholesale and retail channels. Managing physical distribution from a systems approach can provide benefit in. The equipment can be owned or leased to meet the specific transportation needs of the business. Logistics management is defined as a process of management which joins the movement of products, services, data and capital from the stage of raw materials to the consumer end product. Specht has pointed out that this division is not completely accurate, since both of these subsystems exhibit certain common starting points. The evolution from physical distribution to logistics, and then to supply chain management has invoked many interesting studies in recent years.
Made simple introduces the whole field of transport and physical distribution practiced in the 1970s. Paawan raina05 mahima pabri07 akash meena10 bhaskar jorwal11 balendu singh16 physical distribution definition. This transnational mobility is subject to many geopolitical. This book discusses the transport in the framework of. Cool chain transport refrigerated vanscontainers 3. Physical distribution, logistics, supply chain management. This concerns movement of a finished productservice to customers. Trucking companies that transport goods for an individual business. Activities of logistics are categorized into two types and those are as below. Physical distribution is one component of channel management. Dr lius thesis was conferred by heriotwatt university. Overseeing the movement of goods from supplier or manufacturer to point of sale. In this presentation, we will discuss about the concept and definition of physical distribution, defining logistics, relation with other marketing mix variables. Physical distribution is an important decision in todays marketing management.
A critical issue in the management of physical distribution activities is whether the organisation should own transport facilities or hire them. Planned and integrated management of all physical distribution activities particularly transport, storage, inventory control and order processing has assumed. It is a process of managing the movement of the goods. Emerald international journal of physical distribution.