Physical Distribution Channel
Physical Distribution Management
Part of logistics management, physical distribution is concerned with the transporting of merchandise, raw materials, or by-products, such as hazardous waste, from the source to the customer. A manager of physical distribution must also assess and control the cost of transporting these goods and materials, as well as to determine the most efficient way to store them, which usually involves some form of warehousing. Hence, physical distribution (PD) is concerned with inventory control, as well as with packaging and handling. Customer relations, order processing, and marketing are also related activities of PD.
In essence, physical distribution management (PDM) involves controlling the movement of materials and goods from their source to their destination. It is a highly complex process, and one of the most important aspects of any business. PDM is the "other" side of marketing. While marketing creates demand, PDM 's goal is to satisfy demand as quickly, capably, and cheaply as possible.
Currently, computerization is performing the major functions of physical distribution management, from long-range strategic planning to day-to-day logistics, inventory, and market forecasting. The best of these systems are tightly integrated with inventory and other logistics systems, and may even be linked to customers ' systems, as is the case with efficient consumer response (ECR) systems. ECR systems, which some have criticized as being to narrowly focused, attempt to maximize distribution efficiency by delivering inventory on a just-in-time basis. Advanced distribution systems may employ satellite tracking and routing of trucks, electronically tagged pallets or cargo containers, and elaborate data monitoring and storage capabilities. Data collected from these activities are used to identify weak spots in the chain and benchmark improvements.
Often upstart companies and even some large ones as well, rely on third-party distributors for at
Part of logistics management, physical distribution is concerned with the transporting of merchandise, raw materials, or by-products, such as hazardous waste, from the source to the customer. A manager of physical distribution must also assess and control the cost of transporting these goods and materials, as well as to determine the most efficient way to store them, which usually involves some form of warehousing. Hence, physical distribution (PD) is concerned with inventory control, as well as with packaging and handling. Customer relations, order processing, and marketing are also related activities of PD.
In essence, physical distribution management (PDM) involves controlling the movement of materials and goods from their source to their destination. It is a highly complex process, and one of the most important aspects of any business. PDM is the "other" side of marketing. While marketing creates demand, PDM 's goal is to satisfy demand as quickly, capably, and cheaply as possible.
Currently, computerization is performing the major functions of physical distribution management, from long-range strategic planning to day-to-day logistics, inventory, and market forecasting. The best of these systems are tightly integrated with inventory and other logistics systems, and may even be linked to customers ' systems, as is the case with efficient consumer response (ECR) systems. ECR systems, which some have criticized as being to narrowly focused, attempt to maximize distribution efficiency by delivering inventory on a just-in-time basis. Advanced distribution systems may employ satellite tracking and routing of trucks, electronically tagged pallets or cargo containers, and elaborate data monitoring and storage capabilities. Data collected from these activities are used to identify weak spots in the chain and benchmark improvements.
Often upstart companies and even some large ones as well, rely on third-party distributors for at