A system is a set of components or activities that interact with each other. The planning, implementation, and controlling of the physical flow of material or product from one point to another to meet the customer requirements in the market is known as physical distribution. Specht has pointed out that this division is not completely accurate, since both of these subsystems exhibit certain common starting points. Further, the demands on the physical distribution system increase as. Such a capability was developed and demonstrated under this project. A total systems approach to physical distribution i. Water losses in the distribution system 8 15 component of ufw % bangdung indonesia chonburi thailand petaling jaya malaysia trunk mains, distribution system physical 21 2 2 losses service connections 10 34 17 illegal connections non 6 2 2 physical loss under registration and billing 6 8 15 total ufw % 43 46 36 source. Apr 01, 2012 the purpose of this study is to explore the vulnerability of physical distribution networks to antago nistic threats. This is important that the role of flexibility in satisfying competitive opportunities while accommodating logistics uncertainties. 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.
Warehousing network plays a major role in the success of the physical distribution of products. The study of physical distribution should include all factors involved in moving goods rather than concentrating on individual aspects of the process. Physical distribution the movement of materials from the producers to the consumers two functions physical supply physical distribution supply chain. Because its objective is to maximize the level of customer service, marketers must consider total costs. Physical distribution is responsible for delivering to the customer what is wanted on time and at minimum cost. The role of information systems in physical distribution. In physical distribution, the customer is the final destination of a marketing channel, and the availability of the productservice is a vital part of each channel participants marketing effort 4. Findings recognizes the dominance of deductive research in logistics, and the need for more inductive and, in particular, abductive research for theory development. Warehouse, physical distribution system, network optimization, distribution channel, physical flow. Three distribution systems are used to transfer the goods from production place to final consumers.
Given the broad range of choices that businesses have, consumers and the nature. According to this author, acquisition distribution system management includes the. 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 thus, management of the physical flow of products and management and operation of the flow system. Goals and challenges of distributed systems where is the borderline between a computer and a distributed system.
In this chapter we consider issues relating to the actual physical medium used to distribute portable programs. This instruction incorporates a philosophy of risk management in lieu of a risk avoidance. The logistic channel become a major services assurance system for the. Physical distribution is also important because customer satisfaction, to a large extent, depends on reliable movements of goods and service. This is done through transportation and warehousing. The various elements in physical distribution include customer service standards, transportation, warehousing, materials handling, inventory control, and order processing. Global marketing channels and physical distribution global marketing chapter 12 global marketing schrage 12 1 channel objectives marketing channels exist to create utility for customers place utility availability of a product or service in a location that is convenient to a potential customer. Therefore, the role of different physical distribution flexibility types in delivering strategic outcomes is determined. Apr 28, 2015 the evolution from physical distribution to logistics, and then to supply chain management has invoked many interesting studies in recent years. Electrical distribution system reliability improvements, physical security upgrades and on site power generation at the patapsco wastewater treatment plant invitation to bid summary of work. Overseeing the movement of goods from supplier or manufacturer to point of sale. Physical distribution an overview sciencedirect topics.
It is a process of managing the movement of the goods. Transportation systems and services objectives describe the nature and scope of physical distribution identify transportation systems and services that move products from manufacturers to consumers key terms physical distribution transportation common carriers contract carriers private carriers marketing essentials chapter 22, section 22. Physical distribution has two broad objectives viz. Designing of a physical distribution system involves these steps. Physical distribution physical distribution is defined as the group of activities that deals with the supply of finished product from the finished product to the end consumers. Physical distribution has been acknowledged as being an important component of channel management cf. Physical distribution and logistics in marketing management. Physical distribution activities help in creating time and place utility. This concerns movement of a finished productservice to customers. Previous research identifies globalization and just in time jit as the main. In essence, physical distribution management pdm involves controlling the movement of materials and goods from their source to their destination.
It is applied in the supply chain of insulation materials. The nature and scope of physical distribution physical distribution x comprises all the activities that help to ensure that the right amount of product is delivered to the right place at the right time. This description of physical distribution and logistics belies the complexity of decisions and planning in achieving these objectives. This introductory text is focused on the essential concepts, tools and. The design and management of physical distribution systems involve a number of. Physical distribution management pdm caters to the actual movement of products through the various channels of distribution. In a distribution system, six interrelated activities affect customer service and the cost of providing it. The distribution channel includes both the wholesale and retail channels. Learn vocabulary, terms, and more with flashcards, games, and other study tools. Physical distribution management pdm definition marketing. Distribution is the process of making a product or service available for the consumer or business user who needs it. The structure of a marketing channel describes the arrangement and linkage of its members6.
Pdf physical distribution costs in construction supply. Physical distribution activities have an important role to play in success of business. Blocked by its major structural issues like inefficient distribution system and unscientific sourcing, there is a need to study the physical distribution model with the. Physical distribution flexibility in logistics systems and. Distribution strategy 19 physical distribution system inventory control how much inventory should be held. Physical distribution system and activities scm wizard. Aug 01, 2017 physical distribution is responsible for delivering to the customer what is wanted on time and at minimum cost. This research project seeks to identify these factors and also determine in what way they may influence distribution logistics performance. Physical distribution is a distinct but integral part of business logistics, involving all those activities relating to the physical movement of goods from the factory to the consumer. Shaw noted that the accepted system of distribution had been built up on the satis fying of staple needs. Discuss the systems approach to physical distribution recall and discuss the key functions of the physical distribution system to unlock this lesson you must be a member. The cost of incoming transportation tends to be hidden in the price, but the business owner will feel the price directly if he or she has to ship product any. Physical modeling of scaled water distribution system networks.
Optimization of physical distribution of consumer goods in. Distribution management is an overarching term that refers to numerous activities and. Businesses are worried about various aspects of the physical product distribution. The producer can sell directly to the customers without the help of intermediaries. Distribution channels can be also defined as marketing channels or market channels. Transportation system creates place utility as it makes available the goods at the right place where they are required. Introduction production is the creation of goods and services, these goods and services can be produced in factories. Even though physical distribution does not portray the glamour associated with international marketing, it should not be forgotten as a part. Physical distribution is the group of activities associated with the supply of finished product from the production line to the consumers. A distribution channel is a group of dependend on each other organisation units, which are taking part in process of flow of producst or services form producers to buyers.
Physical distribution is the sum of a firms warehouse location decisions, inventory control processes, order handling and transportation decisions. It also includes several critical decision making areas like customer service, materials, inventory, packaging of the finished product, order processing and fulfilment. The following discussion is concerned with the concept of distribution communications and the role of information systems in physical distribution. Jan, 20 this concerns movement of a finished productservice to customers. This instruction stipulates guidance and standards for the design, installation, and maintenance of pds. The objective of the chapter is to concentrate on the linkage of the relevant findings, mainly on the impact of distribution channel on firm performance and the impact. At the outset of this chapter, it was emphasised that changes in one element of the distribution system can have a dramatic, and often unexpected effect on other elements of the system and upon the system as a whole. Recently, the concept has been expanded to supply chain management which enables better customer relationship with smooth supply of goods. Supply chain supplier manufacturer distribution system customer physical supply manufacturing planning and control physical distribution dominant flow of products and services dominant flow of. Physical distribution, logistics, suplly chain management, consummers.
This includes determining the most efficient way to supply products directly to consumers and ensuring that the products actually arrive at the destination. Physical distribution system interfaces transportation legal types of carriage transportation cost elements. Nov 16, 2011 in this presentation, we will discuss about the concept and definition of physical distribution, defining logistics, relation with other marketing mix variables. Physical distribution, logistics, suplly chain management,consummers. Distribution or place is one of the four elements of the marketing mix. The model of the physical distribution system consists of the following cost elements. Physical distribution x comprises all the activities that help to ensure that the right amount of product is delivered to the right place at the right time. Physical distribution involves the cost of moving goods to consumers from a variety of facilities. International physical distribution management is not merely a marketing support system, but it is an integral part of the marketing mix which helps create and develop the international marketing process. The two criteria for establishing a particular physical distribution system are. This field of study is concerned with various aspects related to transportation of the goods, the main of which is transportation cost. The key functions within the physical distribution system are. It is a highly complex process, and one of the most important aspects of any business. Physical distribution major steps in physical distribution system process.
Physical distribution is an important part of distribution strategy. Terminology and structure distribution is the physical flow of goods through channels channels are made up of a coordinated group of individuals or firms that perform functions that add utility to a product or service distributor wholesale intermediary that typically. This can be done directly by the producer or service provider, or using indirect channels with distributors or intermediaries. The objective of distribution management is to design and operate a distribution a system that attains the required level of customer service and does so at least cost. Pdf physical distribution costs in construction supply chains. We will also talk about the objectives of physical distribution process, components of physical distribution, warehousing, inventory management and control. According to this author, acquisition distribution system management includes the management of distribution routes. Physical distribution flexibility in logistics systems and its impact on productivity. Physical distribution is defined as the group of activities that deals with the supply of finished product from the finished product to the end consumers.
Marketing mngmt physical distribution tutorialspoint. Absent specific facts unique to each facility suggesting greater or lesser risks. Distribution strategy 20 physical distribution system transportation how will the products be transported. Activities to deliver the right amount of product to the right place at the right time. By applying the material flow theory that expands attributes of logistics to coordination of environment, economy, and society, this paper examines the evolution from a unique perspective. Hence the need to view the physical distribution system as a. Physical distribution system free download as powerpoint presentation. Transaction channelsales and marketing concerned with transfer of. The focus is on the relationship between information flows and physical distribution management, using the basic tasks of management as a framework for the discussion. Warehousing where should the inventory be located and how many warehouses should be used. However, relatively little attention has been paid to physical distribution function in channels research within the marketing literature. At the time that this project was undertaken, there were no known, readily available and flexible scaled physical experimental models of water distribution systems. Physical distribution refers to the processes through which a business moves a product through distribution channels and gets it to its customers. Place utility global marketing channels and physical.
A seminal article on physical distribution new strategies to move goods, appearing in a september 1966 issue of business week, for the first time fostered an awareness of pd as a separate category of business. Possibilities for this are described and problems of incompatibilities in data format between different systems considered. Ayse sak school of applied sciences, department of internaional trade and logistics, akdeniz university, antalya. The purpose of this study is to explore the vulnerability of physical distribution networks to antago nistic threats. The functional aspect of the distribution channel is seen as a way to connecting and. Pdf identifying the physical distribution form and supply chain. Development and maintenance of an inventory control system.