Physical Distribution
Physical distribution is a term used to describe the methods and means by which a product or a group of products are physically transferred, or distributed, from their point of production to the point at which they are made available to the final customer.(Rushton at el 2010) In other words is the set of activities concerned with efficient movement of finished goods from the end of the production operation to the consumer. Physical distribution takes place within numerous wholesaling and retailing distribution channels. The main activities include customer service, inventory control, material handling, transportation, warehousing and storage.
Physical distribution activities have recently received increasing attention from business managers, including small business owners. This is due in large part to the fact that these functions often represent almost half of the total marketing costs of a product. In fact, research studies indicate that physical distribution costs nationally amount to approximately 20 percent of the country 's total gross national product. (Wood, Donald, and James Johnson 2000)
International physical distribution is the designing and managing of a system of activities that controls the flow of materials into, through, and out of the international corporation to the consumers.
It encompasses the total movement concept by covering entire range of operations concerned with product movement, including both exports and imports simultaneously.
International physical distribution characteristics,
According to Ruston et al (2010) characteristics of these channels are grouped into market characteristics, product and competitive characteristics
. Market characteristics. Under the market characteristics we look at the size, spread and the density of the market that is to say if a market is a very large one and is widely spread from a geographical point of view then it is usual to use long channel. Along channel is where there are several
Physical distribution activities have recently received increasing attention from business managers, including small business owners. This is due in large part to the fact that these functions often represent almost half of the total marketing costs of a product. In fact, research studies indicate that physical distribution costs nationally amount to approximately 20 percent of the country 's total gross national product. (Wood, Donald, and James Johnson 2000)
International physical distribution is the designing and managing of a system of activities that controls the flow of materials into, through, and out of the international corporation to the consumers.
It encompasses the total movement concept by covering entire range of operations concerned with product movement, including both exports and imports simultaneously.
International physical distribution characteristics,
According to Ruston et al (2010) characteristics of these channels are grouped into market characteristics, product and competitive characteristics
. Market characteristics. Under the market characteristics we look at the size, spread and the density of the market that is to say if a market is a very large one and is widely spread from a geographical point of view then it is usual to use long channel. Along channel is where there are several
References: Jobber, D., (2001). Principles and Practice of Marketing. (3rd ed.). London: McGraw-Hill. Kotler, P., (2000). Marketing Management. (10th ed.). New Jersey: Prentice Hall. Rushton, A et al., (2010) The hand book to Logistics Management. (4th ed) New Delhi: kogan page.