Physical distribution is responsible for delivering products to customers on time and at minimum cost. The objective of distribution management is to design and operate a distribution system that provides the required level of customer service in the most cost-effective way possible. Physical distribution involves the movement of goods from manufacturers to customers and includes key elements like order processing, production, warehousing, inventory management, transportation, and material handling. Channels of distribution refer to the companies or individuals involved in moving goods from producers to final customers, and can involve producers delivering directly to consumers, using other companies like wholesalers or warehouses, or a combination of intermediaries.

1. Physical distribution and its channels
PRESENTED BY
PRIYA BAMBALE
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2. Physical distribution
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3. What is Physical distribution?
Physical distribution is responsible for
delivering to the customer what I wanted on
time & minimum cost.
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4. Physical distribution
The objective of distribution management
is to design & operate a distribution system
that attains the required level of customer
services & does so at least cost.
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5. Physical distribution
Types
• Physical supply
Goods moving from supplier to manufacturer
“Inbound”
• Physical distribution
Goods moving from manufacturer to customer
“Outbound”
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6. Physical distribution
Physical Manufacturing Physical distribution
Supply Planning & Control
DOMINANT FLOW OF PRODUCT AND SERVICES
DOMINANT FLOW OF DEMAND AND DESIGN INFORMATION
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MANUFACTURER
DISTRIBUTION
SYSTEM
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7. Key elements of Physical distribution
• Order processing
• Production
• Warehousing
• Inventory Management
• Transportation
• Material Handling
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8. Key elements of Physical distribution
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9. Activity in Physical distribution in System
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10. Channels of distribution
A channel distribution is one or more
companies or individuals who participate in
the flow of goods or services from the
producers to final customer.
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11. Channels of distribution
Types
• Company may deliver directly to customers
• Use other companies or individuals to delivers
good
• Intermediaries
Wholesalers -Agents
Transportation companies -Warehouses
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12. Channels of distribution
Producer Wholesaler Retailer
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Producer Retailer Consumer
Producer Consumer
Consumer

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