-Marketing management

PHYSICAL DISTRIBUTION

Submitted by-
Ridhi taneja
MEANING
 Physical distribution is a marketing activity that concerns the
handling and movement of goods.
 it includes all those activities connected with the efficient
movement of goods from the place of production to place of
consumption.
 In other words it is process of strategically managing the
movement and storage of materials, parts and finished inventory
from suppliers, between enterprise facilities to customers.
 " Physical distribution involved planning , implementing and
controlling the physical flows of materials , and final goods
from the point of origin of use to meet customer needs part
of profit"
- professor Philip kotler
ROLE
 Creation of or addition of utility is
addition to value of thing.
 Transportation system gives place
utility by bringing goods to places
where they are badle needed.
 Warehousing system creates
time utility by holding goods from
time of production to time of
consumption thus, avoiding CREATION OF UTILITIES
shortage or over supply pf goods.
 Customers would be
satisfied if a wide range
of products were
available at right place
and time quantityin
sufficient quantities to
meet the needs and
wants of all who were
willing and able to
buy it.

IMPROVED CUSTOMER SERVICE

 CUT IN DISTRIBUTION COST
 As we know, the price paid
by the user consists of not only
production but also delivery
charges.
 Experts have calculated that
physical distribution costs are in
range of 20-25%.
 Costs can be vut down , by
systematic planning of all
components of physical
distribution system.
 A well designed INCREASED MARKET SHARE
physical distribution frame
can decentralise its
warehousing operations
,advise the combination of
efficient and economic
means of transport to
penetrate in areas untapped
so far.
 Customer expect price
stability over a period .
 It best use of transportation
and warehousing facilities
can bring matching
adjustments between
demand for and supply
of goods thus preventing
price fluctuations and
distortion.

PRICE STABILIZATION
 Order processing includes the
activities of receiving,
recording,filling and assembling
the orders for shipment.
 Since, order processing involves
series of logical steps from
receiving orders to despatch ,
there should be standard
procedure for receiving the
orders,handling them, granting
creduts , invoice, despatching,
etc.
Inventory management, is the
basic task of planning and
controlling of finished goods after
they have been brought out from
production centres and before
delivery to users.
Thus, 2 aspects of it should be
discussed in detail
1- warehousing
2- inventory control
WAREHOUSING
 Warehousing or storage is an act of sorting, holding and
carrying the goods, from the time they are placed in Nd till
they are placed out in common carriers.
 LOCATION -firm has 2 options
1. Centralised' warehouse is near manufacturing plant
and the products are koved to warehouee and later
distributed to different markets.
 2. DECENTRALISED warehouse is built at or in the close
vicinity of market. Accordingly, products are first moved
different warehouse in different markets where they are
assorted according to customer's need

FEATURES OF IDEAL WAREHOUSE INCLUDE THE

FOLLOWING:
• Safety. • scientific layout
• Proper location. • economy
• Sufficient space. • other services
INVENTORY CONTROLLING
 Inventory implies the stock of goods held over a periodic of
time for meeting the consumer needs.
 Inventory acts as a link between the orders of cistomed and
production or the procurement cucke of firm.

Goals of inventory management are-

• Provide adequate customer service
• Minimize firm investment in inventory
INVENTORY CONTROL TECHNIQUES

 Setting stock levels (minimum stock level, reorder

level, maximum level)
 Economic order quantity ( EOQ)
 exercising control by importance and exception (ABC
analysis)
 Keeping track of inventory
 Material handling represents
product handling from plants to
MATERIAL HANDLING
warehouse, location to another
within the warehouse and from
warehouse to place of loading
transport models
 Sound management of material
handling avoids damages and
prevents unnecessary
movement and facilitate order
processing and picking.
TRANSPORTATION
Transportation involves loading and
unloading of goods and shipment
between places of despatch and
places of arrival.
There are most common 5 modes of
transport = Railway
=Roadways
= Airways
= =Waterways
=Pipelines
THANK YOU FOR YOUR
ATTENTION!