The evolution from physical distribution to logistics, and then to supply chain management has invoked many interesting studies in recent years. Physical distribution is thus, management of the physical flow of products and management and operation of the flow system. It also includes several critical decision making areas like customer service, materials, inventory, packaging of the finished product, order processing and fulfilment. Logistics management multiple choice questions with answers.
Warehousing network plays a major role in the success of the physical distribution of products. Logistics and distribution innovation in china alan amling, patricia j. Physical distribution is concerned with the physical movement of the goods from the producer to the consumer. The distribution channel includes both the wholesale and retail channels. This transnational mobility is subject to many geopolitical considerations such as who controls trade routes and what forms of competition and cooperation have emerged with expanded trade relations. Physical distribution, logistics, supply chain management. Transport logistics and physical distribution is a big topic for discussion. This chapter considers the strategic role of logistics in retail management. The purpose of this paper is to identify and explore the content of logistics and supply chain management, and to find the connections and the differentials factors that are between the two areas. When it comes to supply chains or logistical systems, transport activities and warehousing are the primary concerns. Morgan, mert tokman, robert glenn richey, cliff defee. Globalization, trade and freight distribution are interrelated and concern a mobility scale that spans regions, nations and often continents.
Logistics the management process that integrates the activities of all companies to ensure an efficient flow of goods through the supply chain global marketingschrage 12 1220 physical distribution, supply chains, and logistics management order processing. The producer can sell directly to the customers without the help of intermediaries. Mike iravo jomo kenyatta university of agriculture and technology p. Mar 08, 2020 logistics is the area of the supply chain that is concerned with the physical flow of products and goods. Physical distribution, warehousing free download as powerpoint presentation. We will also talk about the objectives of physical distribution process, components of physical distribution, warehousing, inventory management and control. The planning, implementation, and controlling of the physical flow of material or product from one point to another to meet the customer requirements in the market is known as physical distribution. Physical distribution flexibility in logistics systems and its impact on productivity. By applying the material flow theory that expands attributes of logistics to coordination of environment, economy, and society, this paper examines the evolution from a unique perspective. Avc means the most recent version of the algemene vervoerscondities 2002 general conditions of road transport 2002 in the netherlands, established by stichting vervoeradres and deposited at the secretariats.
Principles of logistics management a functional analysis of physical distribution systems by constantin, james a and a great selection of related books, art and collectibles available now at. Physical distribution plays an imporant role in contemporary logistics management. Place utility global marketing channels and physical. Physical distribution flexibility is the ability of a firm to adjust the inventory, packaging, warehousing, and transportation of physical products to meet customer needs, quickly and effectively. Criteria for temperature alerts in cod supply chains. The purpose of this paper is to extend existing and motivate future sustainable supply chain management scm and logistics research by examining a. Chapter 7 trade, logistics and freight distribution the. Factors affecting the performance of distribution logistics. What is the difference between distribution and logistics. An empirical examination of the contribution of capabilities to the.
From the physical supply down to the physical distribution activities, the company has to cater to the increasing demands of its clients and respond appropriately to satisfy them. Both satisfaction level of of customer and competitiveness of company can be enhanced if the distribution problem is solved optimally. Goods distribution channels to distinguish between transfer property rights and channels for physically move the goods. To a certain extent, these processes depend upon the efficient transfer of information, finance and physical goods. If no such maximum has been agreed, the physical distributors liability for these cost shall amount 681 per event.
Production logistics the term is used for describing logistic processes within an industry. Apr 28, 2015 the evolution from physical distribution to logistics, and then to supply chain management has invoked many interesting studies in recent years. Physical distribution, logistics, suplly chain management, consummersneeds. Physical distribution is the group of activities associated with the supply of finished product from the production line to the consumers. This paper provides an overview of the emerging transport. Physical distribution has two broad objectives viz. Also known as logistics, physical distribution involves. The close integration of physical distribution and materials management through logistics is also blurring the reciprocal relationship between the derived transport demand function of physical distribution and the induced transport demand function of materials management. Yet, with a few exceptions, the freight sector appears to be neglected in contemporary research.
For a specific organization, this physical flow is divided into three stages. Processing transporting storing stock handling inventory control marketing essentials chapter 22. The purpose of this paper is to explore how two megatrends, ecommerce and urbanization, have the potential to reshape logistics practices around the world. Com mobile 98900 75900 1 elements of ligistics management logistics management consists of eight elements called wings of logistics. It is an important part of marketing activity and a major component of marketing mix. Physical distribution flexibility in logistics systems and. Physical distribution and logistics in marketing management. We take a holistic, crossfunctional, factbased approach to evaluate the physical, financial and information flows throughout a clients logistics and distribution network and provide actionable plans that you can trust to be in your best interest. The functional aspect of the distribution channel is seen as a way to connecting and ordering of agencies and intermediaries through which one or more streams are flowing. Physical distribution system and activities scm wizard. Chapter 7 trade, logistics and freight distribution.
It is possible to say that the key elements of physical di. Physical distribution is responsible for delivering to the customer what is wanted on time and at minimum cost. The presentation entitled trends and their impact on physical distribution focused on numerous developments that have had an impact on the logistics sector in recent years, such as the growth of ecommerce and omnichannel sales, increasing customer service. The cost of incoming transportation tends to be hidden in the price, but the business owner will feel the price directly if he or she has to ship product any. Dec 30, 2016 logistics and physical distribution are a major area of concern for companies willing to improve their social and environmental performance. Physical distribution flexibility in logistics systems and its. Aug 01, 2017 physical distribution is responsible for delivering to the customer what is wanted on time and at minimum cost. Logistics management is defined as a process of management which joins the movement of products, services, data and capital from the stage of raw materials to the consumer end product. The term distribution channels can at the moment be replaced by the term marketing channel. Designing of a physical distribution system involves these steps.
It includes all those activities which help in efficient movement of goods from producer to consumer, such as transportation, warehousing, material. Full text access editorial board page ifc download pdf. Physical distribution is defined as the group of activities that deals with the supply of finished product from the finished product to the end consumers. Physical distribution refers to the processes through which a business moves a product through distribution channels and gets it to its customers. It is concerned with those issues which form the context for restructuring logistical systems. I will provide you a series of videos for this topic describing all the discussion elements. Physical distribution is the sum of a firms warehouse location decisions, inventory control processes, order handling and transportation decisions. Transport logistics and physical distribution youtube. Processing transporting storing stock handling inventory control marketing essentials chapter 22, section 22. The transport geography of logistics and freight distribution. Com elements of logistics management additional notes scorebms. This implies that distribution, as always, is derived from materials. Activities of logistics are categorized into two types and those are as below. The only way to do this is to ask questions about your logistics processes, evaluate successes and inefficiencies, and alter your logistics management strategy.
The nature and scope of physical distribution also known as logistics, physical distribution involves. Sustainability has become a hot topic in business strategy, including logistics. The objective of distribution management is to design and operate a distribution a system that attains the required level of customer service and does so at least cost. In this presentation, we will discuss about the concept and definition of physical distribution, defining logistics, relation with other marketing mix variables. Nov 16, 2011 in this presentation, we will discuss about the concept and definition of physical distribution, defining logistics, relation with other marketing mix variables. Goods and raw materials that flow into the organiza. Pdf international journal of physical distribution. Findings recognizes the dominance of deductive research in logistics, and the need for more inductive and, in particular, abductive research for theory development.
As a marketing mix element near product development and. At its simplest, the subject of physical distribution and logistics can be defined as having the right quantity of an item, in the right place, at the right time. If the former is associated with the distribution channel channel of distribution, then the second the activities of the socalled physical distribution physical distribution. Vellenga, 1995,international logistics and onestop. O box 6200000200 nairobi, kenya school of human resource development, jomo kenyatta university of agriculture and. Materials management zwhat a company does with inputs zthe way a company acquires materials such as raw materials or parts, how a company handle them once they arrive at the company, and how they are shipped out physical distribution zthe way a company delivers its product to the market, which could be the customers or. There is also a discussion of distribution models for online purchases. It is a process of managing the movement of the goods. The physical distribution arrangement or system designed to move the goods from producers and manufacturers to the users has a definite role. Transport logistics and physical distribution sciencedirect.
Pdf logistics management and supply chain management. And since customers are the main focus of every business, including yours, you have to make them the center of your whole logistics management plan. Jan 07, 2018 transport logistics and physical distribution is a big topic for discussion. Looking at logistics or physical distribution systems from this perspective leads to questions of climate protection and reducing co 2 emissions. A case study of bata shoe company k limited kahia george dr. Ayse sak school of applied sciences, department of internaional trade and logistics, akdeniz university, antalya. Logistics and freight distribution the geography of. Pdf optimization of physical distribution problem in.
This description of physical distribution and logistics belies the complexity of decisions and planning in achieving these objectives. Efulfilment and distribution in omnichannel retailing. International logistics and onestop shopping janjaap semeijn, david b. Factors affecting the performance of distribution logistics among production firms in kenya. Three distribution systems are used to transfer the goods from production place to final consumers. To reach this objective, all activities involved in the movement and storage of goods must be organised into an.
Logistics and physical distribution are a major area of concern for companies willing to improve their social and environmental performance. It is observed that the leading firms adopt and implement the different warehousing strategies such as capacity switching, hub networking, cobbling and outsourcing sople v. Marketing mngmt physical distribution tutorialspoint. Physical distribution warehouse and logistic system.
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