This document provides an overview of physical distribution according to several marketing experts like Runyon, McCarthy and Perreault, Stanton, and Kotler. Physical distribution refers to all the activities involved in transporting and storing raw materials and finished goods from producers to consumers. It includes inventory planning and control, transportation, order processing, and warehousing. The objective of physical distribution is to reduce overall costs by balancing these key functions.

1. W E L C O M E
to our
Marketing
Reporting

2. TOPIC:
CHAPTER 7
Physical
Distribution

3. PRODUCTION
The
Marketin
g
Process
Includes different processes,
PRICING
styles and principles
SELLING

4. According to Runyon
“Physical Distribution is a marketing
subsystem which consists of all
activities involved in the physical
movement of raw materials and
finished goods from producers to
consumers.”

5. According to McCarthy and
Perreault
“Physical Distribution is the process
of transporting and storing of
physical goods within individual
firms and along channel
systems.”

6. According to Stanton
“Physical distribution includes all
the activities with moving the
amount of the right products to the
right place at the right time.”

7. According to Kotler
“ The tasks involved in planning ,
implementing, and controlling the physical
flows of materials and final goods from
points of origin to points of use to meet the
needs of customers at a profit.”

8. Physical Distribution
Refers to the tasks
involved in managing
the physical flows of
materials and final
goods from points of
origin to points of use to
meet the needs of the
customers and the
institution.

9. CUSTOMER
ORDER PROCESSING
INVENTORY
INVENTORY
INFORMATION SYSTEM
STORAGE

10. OBJECTIVE
of
PhysicalDistribution
To reduce the overall cost of physical
distribution by the proper balancing of
its component functions.

11. Inventory Planning
And
Control
Transportation Order Processing
Warehousing

12. Economic Order Quantity(EOQ)
It can be used to determine what quantity to order so as
to minimize total inventory costs.
The formula is:
Q= Square root of 2TS/CI
Q=EOQ
T= Total Units Disposed per year
S= Restocking or ordering cost
I= Annual carrying cost

13. Inventory Planning
And
Control
Transportation Order Processing
Warehousing

14. Railroads
Airplanes
Trucks
Water Pipelines
Vessels

15. TRAMPERS
BARGES
Special Transport
Agencies

16. Inventory Planning
And
Control
Transportation Order Processing
Warehousing

17. It is an important component of Physical Distribution.
Warehousing decisions must be made as to the type of
warehousing to be used and the number and location of
warehousing facilities.
PRIVATE
WAREHOUSING
PUBLIC
WAREHOUSING

18. Private Warehouses are
those owned or leased
by the company.
Public Warehouses are those
operated by professional
warehouse owners which provide
storage and related physical
distribution facilities on a rental
basis to the firm.

19. Inventory Planning
And
Control
Transportation Order Processing
Warehousing

20. It refers to receiving, recording, filling, and
assembling orders for shipment.
The Customer
Order origination and
transmission
The Firm
Internal order processing
and order assembly
The Transport Mode
Transit time of delivedry