Physical distribution

Physical distribution

• 1.
  Cover of thistopic.  Definition .  Object.  Order Processing.  Transportation.  Supply Chain Management.
• 2.
   Physical Supply  goods moving from supplier to manufacturer  “inbound”  Physical Distribution  goods moving from manufacturer to customers  “outbound”
• 4.
   This concernsmovement of a finished product/service to customers.  In physical distribution, the customer is the final destination of a marketing channel, and the availability of the product/service is a vital part of each channel participant’s marketing effort
• 5.
   Company maydeliver directly to customers  Use other companies or individuals to deliver goods  Intermediaries  wholesalers – agents  transportation companies – warehouses
• 6.
  1. Total CostConcept 2. Customer Service Concept a. Time b. Dependability c. Communication d. Convenience e. Accuracy
• 7.
  3. Distribution Cost-Servicetrade offs a. Achieve right balance between them b. Flexibility is important in balancing the cost and service
• 8.
  a. Verifying Customers’ Credibility b. Checking for any outstanding payment c. Monitoring stock level d. Preparing invoice e. Arranging transporter f. Sending the consignment and information
• 9.
  i. Suitability or nature of product ii. Affordability iii. Availability iv. Customers’ specifications v. Competitor’s transportation model
• 10.
   Developed in1980s.  SCM is the process of planning, implementing, and controlling the operation of the supply chain as possible  The primary objective of supply chain management is to fulfill customer demand through the most efficient use of resources