DISTRIBUTION MANAGEMENT:

AN INTRODUCTION

Presented By:-
Pawan Pratap Singh
FMS-BHU
 THE PHYSICAL DISTRIBUTION CONCEPT

• It involves planning, implementing and

controlling the physical flows of materials and
goods from point of origin to point of use to
meet customer requirements at a profit.
- Philip Kotler
It consists of all the activities concerned with
moving the right amount of the right products
to the right place at the right time.
- William Stanton

It involves the actual movement and storage of

goods after they are produced and before they
are consumed.
- Cundiff and Still
 SYSTEMS PERSPECTIVE OF PHYSICAL
DISTRIBUTION:
1. Customer service:- What level of service
should be provided?
2. Order processing:-
Order Order
placed received

Inventory
checked

Production Orders
scheduled shipped
3. Warehousing:-
Regulate the flow of goods
through a marketing channel.
Roles:-
1. Making bulk (consolidating shipments).
2. Breaking bulk.
3. Value addition.

Warehouse location:-
• Centralized.
• Decentralized.
4. Inventory control:- Kept in anticipation of
market demands based on the sales forecast.
Establishment of inventory control system:-
• Safety stock.
• EOQ:-
5. Protective packaging:-

Primary packaging.
Secondary packaging
Tertiary packaging.
6. Transportation:-

COST AND QUALITY FACTORS RAIL ROAD AIR WATER

Transportation cost Medium High Highest Lowest

Transit time Medium Fast Fastest Slowest

Dependability in meeting Medium Good Very good Fair

schedules
Ability to reach shippers over Very Good Best Very good Very
wide spread areas limited
Products ideally suited to Low value High value High value Low value
movement bulk manufacture and bulk
commoditie
Ref.:- d products perishable commoditi
s goods es

REF.:-
P.K. Agrawal(sales and distribution management )
 SIGNIFICANCE OF PHYSICAL
DISTRIBUTION SYSTEM
• Availability:- Availability should be viewed as
the output of the physical distribution system.
By:- Alan C. Mckinnon
(Physical Distribution System)
• Lead Time:- Period between the customer
orders goods and it is delivered to customer’s
premises.
• Expenditure:-
• Increased market share.
• Creation of utilities.
1. Place utility.
2. Time utility.

• Price stabilization.
• Improved Customer services.
Factors to be taken care of:-
1. Distribution channels.
2. Component availability.
3. Market.
4. Resource position.
5. Product.
 Making the system effective:-
1. Reducing excess inventories.
2. Receptivity to innovations.
3. Simplifying the distribution system.
4. Packaging considerations.
5. Revising the channels of distribution.
By:- Prof. Robert Hartley