ONEL GILFRED B.

PALAR BSIE 4-A

"Critique Paper 7"

The given topic was all about Physical distribution and to this topic you will learned about the
importance of marketing functionwhich describes marketing activities that involves flow of raw
materials from the suppliers to the factories for production and also the movement of finished
goods from production to the final user. Therefore, in the subtopic I will choose about Faster
shipping because Typically, this means that sellers will use fast shipping as a customer
incentive, leading to an increase in sales; as sales grow, sellers add more products with fast
shipping and the cycle continues. Often products that offer fast shipping will rank higher in
search engines, resulting in even more sales.

I would insert the selected topic and to discuss and it is all about Cost reduction which is s the
process of decreasing a company's expenses to maximize profits. It involves identifying and
removing expenditures that do not provide added value to customers while also optimizing
processes to improve efficiency. Cost reduction typically focuses on generating short-term
savings.Cost reduction is crucial to a business's long-term profitability and sustainability. By
reducing expenses, a company can increase its profits and reinvest those funds into other
business areas or use them to lower prices and become more competitive.

Supports price stabilization Another major benefit of physical distribution is price stabilization.
Implementing a system thatcan deliver products efficiently and quickly can prevent price spikes
when demand is high andsupplies are low.Price stability supports higher living standards by
reducing uncertainty about general price developments, thereby improving the transparency of
the price mechanism. It makes it easier for consumers and companies to recognise price
changes which are not common to all goods (so-called “relative price changes”).

In conclusion, Physical distribution is the movement of goods, products, and raw materials
between warehouses, factories, and distribution centers, and sending finished products to the
customer.As an Industrial Engineer you will know about The importance of physical distribution
it will help you to a company can vary and is typically associated with the type of product and
the necessity it has to customer satisfaction. Strategically staging products in locations to
support order shipments and coming up with a rapid and consistent manner to move the
product enables companies to be successful in dynamic markets.