Production logistics the term is used for describing logistic processes within an industry. Physical distribution system and activities scm wizard. Com mobile 98900 75900 1 elements of ligistics management logistics management consists of eight elements called wings of logistics. Transport logistics and physical distribution youtube. Logistics and freight distribution the geography of. Physical distribution, warehousing free download as powerpoint presentation. Physical distribution flexibility in logistics systems and its impact on productivity. Yet, with a few exceptions, the freight sector appears to be neglected in contemporary research. Mar 08, 2020 logistics is the area of the supply chain that is concerned with the physical flow of products and goods. Ayse sak school of applied sciences, department of internaional trade and logistics, akdeniz university, antalya. Physical distribution warehouse and logistic system. Dec 30, 2016 logistics and physical distribution are a major area of concern for companies willing to improve their social and environmental performance.
For a specific organization, this physical flow is divided into three stages. Designing of a physical distribution system involves these steps. 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. 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. It is a process of managing the movement of the goods. Factors affecting the performance of distribution logistics. 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. The term distribution channels can at the moment be replaced by the term marketing channel. An empirical examination of the contribution of capabilities to the. Mike iravo jomo kenyatta university of agriculture and technology p.
Physical distribution flexibility in logistics systems and its. It is concerned with those issues which form the context for restructuring logistical systems. Physical distribution refers to the processes through which a business moves a product through distribution channels and gets it to its customers. Warehousing network plays a major role in the success of the physical distribution of products. Physical distribution is the group of activities associated with the supply of finished product from the production line to the consumers. Physical distribution and logistics in marketing management. This chapter considers the strategic role of logistics in retail management.
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. The transport geography of logistics and freight distribution. Morgan, mert tokman, robert glenn richey, cliff defee. The evolution from physical distribution to logistics, and then to supply chain management has invoked many interesting studies in recent years. This implies that distribution, as always, is derived from materials.
Sustainability has become a hot topic in business strategy, including logistics. Physical distribution is thus, management of the physical flow of products and management and operation of the flow system. Chapter 7 trade, logistics and freight distribution the. To a certain extent, these processes depend upon the efficient transfer of information, finance and physical goods. Physical distribution plays an imporant role in contemporary logistics 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.
What is the difference between distribution and logistics. Logistics and distribution innovation in china alan amling, patricia j. 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. Transport logistics and physical distribution sciencedirect. 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. Criteria for temperature alerts in cod supply chains. This paper provides an overview of the emerging transport.
Marketing mngmt physical distribution tutorialspoint. The producer can sell directly to the customers without the help of intermediaries. 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. Globalization, trade and freight distribution are interrelated and concern a mobility scale that spans regions, nations and often continents. Transport logistics and physical distribution is a big topic for discussion. Physical distribution, logistics, suplly chain management, consummersneeds. The purpose of this paper is to extend existing and motivate future sustainable supply chain management scm and logistics research by examining a. 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. The distribution channel includes both the wholesale and retail channels. Pdf optimization of physical distribution problem in. Physical distribution flexibility in logistics systems and. Logistics and physical distribution are a major area of concern for companies willing to improve their social and environmental performance. O box 6200000200 nairobi, kenya school of human resource development, jomo kenyatta university of agriculture 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. 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. Pdf international journal of physical distribution. The only way to do this is to ask questions about your logistics processes, evaluate successes and inefficiencies, and alter your logistics management strategy. It also includes several critical decision making areas like customer service, materials, inventory, packaging of the finished product, order processing and fulfilment. Aug 01, 2017 physical distribution is responsible for delivering to the customer what is wanted on time and at minimum cost. It is possible to say that the key elements of physical di.
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. Both satisfaction level of of customer and competitiveness of company can be enhanced if the distribution problem is solved optimally. 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. 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. 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. If no such maximum has been agreed, the physical distributors liability for these cost shall amount 681 per event. Physical distribution has two broad objectives viz.
Processing transporting storing stock handling inventory control marketing essentials chapter 22, section 22. Physical distribution is the sum of a firms warehouse location decisions, inventory control processes, order handling and transportation decisions. Goods distribution channels to distinguish between transfer property rights and channels for physically move the goods. Logistics management multiple choice questions with answers. 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. 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. I will provide you a series of videos for this topic describing all the discussion elements. The physical distribution arrangement or system designed to move the goods from producers and manufacturers to the users has a definite role. 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. Looking at logistics or physical distribution systems from this perspective leads to questions of climate protection and reducing co 2 emissions.
Full text access editorial board page ifc download pdf. Pdf logistics management and supply chain management. To reach this objective, all activities involved in the movement and storage of goods must be organised into an. Physical distribution, logistics, supply chain management. Place utility global marketing channels and physical. Also known as logistics, physical distribution involves. It includes all those activities which help in efficient movement of goods from producer to consumer, such as transportation, warehousing, material. Efulfilment and distribution in omnichannel retailing. When it comes to supply chains or logistical systems, transport activities and warehousing are the primary concerns.
Factors affecting the performance of distribution logistics among production firms in kenya. Physical distribution is concerned with the physical movement of the goods from the producer to the consumer. Jan 07, 2018 transport logistics and physical distribution is a big topic for discussion. It is an important part of marketing activity and a major component of marketing mix. If the former is associated with the distribution channel channel of distribution, then the second the activities of the socalled physical distribution physical distribution. The purpose of this paper is to explore how two megatrends, ecommerce and urbanization, have the potential to reshape logistics practices around the world. The nature and scope of physical distribution also known as logistics, physical distribution involves. Chapter 7 trade, logistics and freight distribution. This description of physical distribution and logistics belies the complexity of decisions and planning in achieving these objectives. Processing transporting storing stock handling inventory control marketing essentials chapter 22. Goods and raw materials that flow into the organiza. Apr 28, 2015 the evolution from physical distribution to logistics, and then to supply chain management has invoked many interesting studies in recent years.
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. Findings recognizes the dominance of deductive research in logistics, and the need for more inductive and, in particular, abductive research for theory development. In this presentation, we will discuss about the concept and definition of physical distribution, defining logistics, relation with other marketing mix variables. We will also talk about the objectives of physical distribution process, components of physical distribution, warehousing, inventory management and control. There is also a discussion of distribution models for online purchases. A case study of bata shoe company k limited kahia george dr.
Com elements of logistics management additional notes scorebms. Activities of logistics are categorized into two types and those are as below. International logistics and onestop shopping janjaap semeijn, david b. Three distribution systems are used to transfer the goods from production place to final consumers. Vellenga, 1995,international logistics and onestop. As a marketing mix element near product development 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.