3. What is Physical distribution?
Physical distribution is responsible for
delivering to the customer what I wanted on
time & minimum cost.
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4. Physical distribution
The objective of distribution management
is to design & operate a distribution system
that attains the required level of customer
services & does so at least cost.
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5. Physical distribution
Types
• Physical supply
Goods moving from supplier to manufacturer
“Inbound”
• Physical distribution
Goods moving from manufacturer to customer
“Outbound”
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6. Physical distribution
Physical Manufacturing Physical distribution
Supply Planning & Control
DOMINANT FLOW OF PRODUCT AND SERVICES
DOMINANT FLOW OF DEMAND AND DESIGN INFORMATION
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MANUFACTURER
DISTRIBUTION
SYSTEM
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7. Key elements of Physical distribution
• Order processing
• Production
• Warehousing
• Inventory Management
• Transportation
• Material Handling
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10. Channels of distribution
A channel distribution is one or more
companies or individuals who participate in
the flow of goods or services from the
producers to final customer.
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11. Channels of distribution
Types
• Company may deliver directly to customers
• Use other companies or individuals to delivers
good
• Intermediaries
Wholesalers -Agents
Transportation companies -Warehouses
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