Definition Physical Distribution
Definition Physical Distribution
Definition
Activities concerned with efficient movement of products and raw materials from producers to
consumers.It is the set of activity concerned with the physical flow of materials,components and
finish goods producer to channel institution and consumer .
Distributionis one of the four aspects of marketing.A distributor is the middleman between the
manufacturer and retailer.After a product is manufactured it is typically shipped (and usually
sold) to a distributor. The distributor then sells the product to retailers or customers
On the demand side of the organization, products and services need to be ‘communicated’ or moved to
the customer. In the case of manufacturing operations, this involves the physical transportation of the
goods from the manufacturing operation to the customer. In the case of high customer contact service,
the service is created in the presence of the customer. Here we limit ourselves to manufacturing
operations that need to distribute their physical products to customers (and implicitly to those
transportation operations, such as trucking companies, whose primary concern is physical distribution).
Sometimes the term ‘logistics’ is used as being analogous to physical distribution management.
Originally the term related to the movement and coordination of troops and military supplies. More
recently is has been used to describe physical distribution management beyond the immediate
customer, through to the final customer in the chain.