Chapter 7 trade, logistics and freight distribution the. The structure of a marketing channel describes the arrangement and linkage of its members6. Says that all transporting, sorting, and producthandling activities of a business channel which should seek. Physical distribution and logistics in marketing management. Three distribution systems are used to transfer the goods from production place to final consumers. Physical distribution flexibility in logistics systems and. International physical distribution logistics and ipd free download as powerpoint presentation. Physical distribution last stage of production is consumption and consumers are called customers. The term distribution channels can at the moment be replaced by the term marketing channel. In this presentation, we will discuss about the concept and definition of physical distribution, defining logistics, relation with other marketing mix variables.
Sustainability has become a hot topic in business strategy, including logistics. Physical distribution flexibility is the ability of a firm to adjust the inventory, packaging, warehousing, and transportation of physical products to meet customer needs, quickly and effectively. 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. Hence, products are produced to provide it to the consumers. Materials management zwhat a company does with inputs zthe way a company acquires materials such as raw materials or parts, how a company handle them once they arrive at the company, and how they are shipped out physical distribution zthe way a company delivers its product to the market, which could be the customers or.
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. It also includes several critical decision making areas like customer service, materials, inventory, packaging of the finished product, order processing and. Whats the difference between distribution management and. Physical distribution is responsible for delivering to the customer what is wanted on time and at minimum cost. According to ballou16 physical distribution and logistics can be considered in the same way as product, price and promotional elements of the mix. Distribution management is an overarching term that refers to numerous activities and. It is an important part of marketing activity and a major component of marketing mix. Apr 28, 2015 the evolution from physical distribution to logistics, and then to supply chain management has invoked many interesting studies in recent years. The purpose of this paper is to explore how two megatrends, ecommerce and urbanization, have the potential to reshape logistics practices around the world. Overseeing the movement of goods from supplier or manufacturer to point of sale. Aug 01, 2017 physical distribution is responsible for delivering to the customer what is wanted on time and at minimum cost. Logistics management multiple choice questions with answers.
Distribution management involves inventory management, purchasing, receiving the inbound loads suppliers, storing the product into storage facility, reteriving product from storage when order arrives, preparing transportation documents such as bill of lading, commerical invoice, certificate of origin or packaging slip and loading the product into the tailor or transportation mode according. Pdf physical distribution management semantic scholar. Chapter 7 trade, logistics and freight distribution globalization, trade and freight distribution are interrelated and concern a mobility scale that spans regions, nations and often continents. The demandcreating role of physical distribution efforts. 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. Professor chee yew wong appointed new editorinchief of the international journal of physical distribution and logistics management. The nature and scope of physical distribution also known as logistics, physical distribution involves.
Logistics and distribution innovation in china alan amling, patricia j. 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. The evolution from physical distribution to logistics, and then to supply chain management has invoked many interesting studies in recent years. Physical distribution is concerned with the physical movement of the goods from the producer to the consumer.
Designing of a physical distribution system involves these steps. Habla sobre las distribucion logistica internacional. Says that all transporting, sorting, and producthandling activities of a business channel which should seek to minimize the cost of distribution. To reach this objective, all activities involved in the movement and storage of goods must. Inbound logistics is one of the most overlooked aspects in logistics management. Physical distribution, logistics, supply chain management. Designmethodologyapproach because of limited knowledge about the benefits of logistics clustering a main objective of this paper is theory building. Warehousing network plays a major role in the success of the physical distribution of products. When it comes to supply chains or logistical systems, transport activities and warehousing are the primary concerns. Physical distribution system and activities scm wizard. Place utility global marketing channels and physical.
Thank you to the international journal of physical distribution and. Marketing mngmt physical distribution tutorialspoint. Producers produce the product and sell it to the agent for wholesaler sells it to the retailer. 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.
Important physical distribution functions include customer service, order processing, inventory control, transportation and logistics, and packaging and materials. Physical distribution is the sum of a firms warehouse location decisions, inventory control processes, order handling and transportation decisions. Physical distribution and logistics management in the digital era. The distribution channel includes both the wholesale and retail channels. For a specific organization, this physical flow is divided into three stages.
Logistics is the area of the supply chain that is concerned with the physical flow of products and goods. On average, companies can potentially save between 20 58% on inbound freight spend. It also includes several critical decision making areas like customer service, materials, inventory, packaging of the finished product, order processing and fulfilment. We will also talk about the objectives of physical distribution process, components of physical distribution, warehousing, inventory management and control. Some of the elements that comprise physical distribution can be used through service levels to influence demand as shown. Physical distribution and logistics management in the. This transnational mobility is subject to many geopolitical considerations such as who controls trade routes and what forms of competition and. 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.
Logistics the management process that integrates the activities of all companies to ensure an efficient flow of goods through the supply chain global marketingschrage 12 1220 physical distribution, supply chains, and logistics management order processing includes order entry in which the order is actually. 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. What is the difference between distribution and logistics. It is observed that the leading firms adopt and implement the different warehousing strategies such as capacity switching, hub networking, cobbling and outsourcing sople v.
This concerns movement of a finished productservice to customers. Looking at logistics or physical distribution systems from this perspective leads to questions of climate protection and reducing co 2 emissions. Distribution management involves inventory management, purchasing, receiving the inbound loads suppliers, storing the product into storage facility, reteriving product from storage when order arrives, preparing transportation documents such as bill of lading, commerical invoice, certificate of origin or packaging slip and loading the product into the tailor or transportation. Activities of logistics are categorized into two types and those are as below. Pdf international journal of physical distribution. Processing transporting storing stock handling inventory control marketing essentials chapter 22, section 22. Chapter 7 trade, logistics and freight distribution.
The benefits of logistics clustering liliana rivera mit center for transportation and logistics, mit, cambridge. Founded in 1970, it is published ten times per year by emerald group publishing limited. The authors employed a grounded theory approach and conducted 5 open and semi structured interviews with logistics executives. International physical distribution logistics and ipd. Findings recognizes the dominance of deductive research in logistics, and the need for more inductive and, in particular, abductive research for theory development. Physical distribution refers to the processes through which a business moves a product through distribution channels and gets it to its customers. Goods and raw materials that flow into the organiza.
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