The physical distribution function of a firm provides the place and time dimensions which contribute a basic element of marketing mix. The major components of physical distribution are transportation and warehousing. The outcome is the maximisation of consumer satisfaction and profits to the firm.

What is physical distribution of goods and services?

Physical distribution refers to the movement of finished goods from a company’s distribution and fulfillment network to the end user. In ecommerce, physical distribution involves several ecommerce supply chain activities including warehousing, inventory control, order processing, retail fulfillment, and shipping.

What are the 5 types of physical distribution transportation systems?

The Types of Physical Distributions

• Supplying Distribution. Supplying distribution is when businesses transport materials from supply to stock.
• Carriers.
• Intermodal Transportation.
• Cargo Planes.
• Sales and Distribution.

What are the key functions of physical distribution?

Physical distribution includes all the activities associated with the supply of finished product at every step, from the production line to the consumers. Important physical distribution functions include customer service, order processing, inventory control, transportation and logistics, and packaging and materials.

Why is physical distribution an important marketing function?

Physical distribution is an important marketing function descri­bing the marketing activities relating to the flow of raw materials from the suppliers to the factory and the movement of finished goods from the end of production line to the final consumer or user.

What are the activities of a physical distribution company?

It includes all those activities which help in efficient movement of goods from producer to consumer, such as trans­portation, warehousing, material handling, inventory control, order processing, market forecasting, packaging, plant and warehouse location and customer ser­vice.

Which is a function of the physical distribution channel?

The second, the physical distribution function, moves products through the exchange channel, simultaneously with title and ownership. Decisions concerning both of these sets of activities are made in conjunction with the firm’s overall marketing plan and are designed so that the firm can best serve its customers in the market place.

What does consumer service mean in physical distribution?

Consumer service in physical distribution means making products in right quantity available at right time and right place i.e. place where customer needs. Order processing is the starting point of any distribution activity.