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Physical Distribution Management

Physical distribution management is the process of planning, organizing, and controlling the movement of materials and goods from production to consumption. It includes activities like transportation, warehousing, inventory control, packaging, material handling, and customer service. It is responsible for facilitating marketing transactions and the other side of marketing. An effective physical distribution system creates time, place, and possession utilities while reducing costs and improving customer service. Key factors that affect the physical distribution system are the product, market, distribution channels, distribution facilities, and available financial resources. Causes of poor physical distribution include a lack of awareness about cost savings potential and non-interference of government in price fixing.

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GANESWAR BARIK
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1K views8 pages

Physical Distribution Management

Physical distribution management is the process of planning, organizing, and controlling the movement of materials and goods from production to consumption. It includes activities like transportation, warehousing, inventory control, packaging, material handling, and customer service. It is responsible for facilitating marketing transactions and the other side of marketing. An effective physical distribution system creates time, place, and possession utilities while reducing costs and improving customer service. Key factors that affect the physical distribution system are the product, market, distribution channels, distribution facilities, and available financial resources. Causes of poor physical distribution include a lack of awareness about cost savings potential and non-interference of government in price fixing.

Uploaded by

GANESWAR BARIK
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

Physical Distribution

Management
MEANING OF PHYSICAL DISTRIBUTION MANAGEMENT PDM

• "Physical distribution management is the process of


planning, organizing and controlling all the movement of
materials and goods after they are produced and before
they are consumed.
• It refers to activities like freight, transportation,
warehousing, inventory control, protective packaging,
material handling and consumer services.
• It is the other side of the marketing responsible for the
marketing transaction
Verifying Customers' Credibility

Checking for any outstanding payment

Order Processing
Monitoring stock level

Preparing invoice

Arranging transporter

Transportation Sending the consignment and information

Suitability or nature of product

Physical Affordability

Distribution Availability
System
Customers' specifications
Warehousing
Competitor's transportation model

General Warehousing

Distribution Warehousing
Packaging
Identify the Product

Contain & Protect the product

Contribute to physical distribution efficiency

Materials Handling
To increase cube utilization by using the height of building & by reducing space

To improve operating efficiency by reducing handling

To improve the service levels by increasing the speed of response to customer needs
Importance and Utility of Physical
Distribution System
• Creation of time ,place and possession utilities
• Reduction in distribution cost
• It helps to maintain large market share
• It results in improvement in customer services
• It helps in stabilization of prices
• It helps in increasing of sales volume
• It maintains coordination between demand and supply.
• Effect on size inventory is monitored.
• It assists in facing rising competition.
Factors Affecting Physical Distribution
System

• Product
• Market
• Distribution channel
• Distribution facilities
• Availability of financial resources.
Causes Of Poor Physical Distribution

• Lack of awareness about the saving potential in the cost of


distribution
• Absence of stiff competition in the market for certain
products
• Non-interference of the government machineries in the
price fixation process for various products.
Summary Of The Case

Arvind Lifestyle Brands Limited (ALBL) is a renowned brand for retailing both in-
house and licensed international brands. The case deals with challenges like
demand unpredictability, volatility and craze peculiar to fashion and how they
influence the design of not just an efficient and responsive supply chain but also the
product mix of a fashion retailer.
The case establishes the importance of various activities, from planning, design,
manufacturing to distribution and retailing, in the value chain for a fashion product
and thus leads the student on to understand the significance of fulfillment in the
fashion industry. The case prompts the readers to think about the interactions
among the stakeholders, both upstream and downstream of the value chain.
It also convince and persuade them to evaluate effective solutions and the
underlying technologies of blockchain in the ALBL context and how the
implementation challenges can be overcome to facilitate communication between
various players in the chain leading to more responsive processes.
The case has details about the design practice of ALBL i.e. Concept to Shelf
(CTS), followed by brands under the ALBL umbrella, primarily focusing on the
challenges associated with the product development or the design phase.
Material flow is discussed in terms of the manufacturing, supply, and retail
strategy adopted by the company. It challenges the students to think about the
strategies that would enable an Indian fashion retailer to improve the
competitiveness in the market and focus on the key strengths of branding and
retail of the licensed brands. It also discusses the influence of e-commerce on
physical retailing and design of an omni-channel supply chain. This case
encompasses the complete gamut of operations of an Indian fashion retailer. It
helps the readers to think about multiple aspects of working in synchronization
to improve the overall functioning, efficiency, profitability and productivity of
ALBL.

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