It is defined as the design and management of a
system that directs and controls the flows of
materials into, through and out of the firm across
national boundaries to achieve its corporate
objectives at a minimum total cost .
It encompasses materials management, sourcing,
and physical distribution.
It refers to the inflow of raw materials, parts, and supplies in and through
It refers to the movement of the firm’s finished products to its customers,
consisting of transportation, warehousing, inventory, customer
service/order entry, and administration.
It refers to an operational link between materials management and
physical distribution, and deals with how companies manage R&D (e.g.,
product development and engineering), operations (e.g., manufacturing),
and marketing activities.
Identify specific target markets within and across
Specify marketing goals in terms of volume , market
share and profit margin requirements
Specify financial and personal commitments to the
development of international distribution
Identify control, length of channels, terms of sale and