COMPONENTS OF

PHYSICAL
DISTRIBUTION
 an introduction
Physical distribution covers all the activities
required to physically move alll goods from
manufacturers the the customers. Important
activities involved in the physical distribution
include transportation, warehousing, material
handling, and inventory control. These activities
constitute
major components of physical
distribution.
 TRANSPORTATION
MEANING
Transportation is the means
of carrying goods and raw
materials from the point of
production to the point of
sale.
IMPORTANCE
It is one of the major elements in
the physical distribution of goods.
It is important because unless the
goods are physically made
available, the sale cannot be
completed.
 TRANSPORTATION

USE
It helps in creating "place
utility by making available the
goods where they are required.

EXAMPLES
Railroads, marine highways,
Road transportation, boats.
ORDER PROCESSING

WHAT IS ORDER PROCESSING?

Order processing software stores and shares
data on orders,checks stock availability and
track order delivery,all of which can help
ensure orders are filled accurately and on
time.
1) Order placement:-
Depending on the company
and its operating model.
2) Picking
Picking the products mainly refers to locating
the items that were ordered and preparing
them for shipment.
ORDER PROCESSING
3) sorting:-
sorting is a practical step in organising the shipping.

4)Packing:-
packing the products into bows or bags when they are ready to
be shipped.

5)shipping:-
shipping the products is getting them to the customers
doorstep.

6)Delivery:-
the fulfilled cycle is not done the customer receives the
product.aid it everything is ok and customer keeps it and then
fulfilment is considered to be done.
 WAREHOUSING
WHAT IS WAREHOUSING?
Warehousing plays a crucial role in
physical distribution and marketing by
providing storage, facilitating efficient
inventory management, ensuring product
availability, and minimizing supply chain
disruptions. It helps optimize distribution
processes, reduce lead times, and
enhance customer satisfaction through
timely product delivery.
 WAREHOUSING

FUNCTIONS OF WAREHOUSING
1. Consolidation
2. Bulk Breaking
3. Value added services
4. Financing
5. Stock piling
6. Price Stabilisation
 WAREHOUSING
IMPORTANCE OF WAREHOUSING

Warehousing plays a crucial role in physical distribution and

marketing by providing storage, facilitating efficient inventory
management, ensuring product availability, and minimizing
supply chain disruptions. It helps optimize distribution
processes, reduce lead times, and enhance customer
satisfaction through timely product delivery
 WAREHOUSING

THE TYPES OF WAREHOUSES

1. Public Warehouses
2. Private Warehouses
3. Bonded Warehouses
4. Automated Warehouses
5. Government Warehouse
 inventory control
WHAT IS INVENTORY CONTROL?
Linked to warehousing decisions are the
inventory decisions which hold key to
success for many manufacturers , especially
those where the per unit cost is high . A very
important decision in respect of inventory is
deciding about the level of inventory . Higher
the level of inventory , higher will be the
level of service to customers.
 inventory control
THE MAJOR FACTORS DETERMINING INVENTORY LEVELS INCLUDE:
1). Level of service
Firm's policy regarding the level of customer service to be offered . Higher the
level of service greater will be the need to keep more inventories.

2). Degree of accuracy

degree of accuracy of the sales and the new concept of Just - in Time -
Inventory
 inventory control
THE MAJOR FACTORS DETERMINING INVENTORY LEVELS INCLUDE:

3). Distribution system

responsiveness of the distribution the demand for the product . A correct
estimate of the demand helps to hold inventory and cost level down to a
minimum

4). Cost of inventory

which includes holding cost such as cost of warehousing , tied up capital , etc
and the manufacturing cost
promotion
 WHAT IS PROMOTION
Promotion refers to the use of communication
with the twin objective of informing potential
customers about a product and persuading
them to buy it
THE 4 MAJOR TOOLS OF PROMOTION ARE
1. ADVERTISING
2. PERSONAL SELLING
3. SALES PROMOTION
4. PUBLICITY
 MANASA P
NISHITHA
KEERTHANA JR
RUCHITHA S
RAKSHITHA R