Logistics and phyical distribution
As per financial capacity, need, time available and overall suitability, the appropriate mode of transportation should be selected.
In other words, logistics takes an overall view of the entire process of improving distribution channels and warehouse management to ensure the smooth flow of the supply chain. He may be line administrator, a manager with staff responsibility, or the combination of both staff and line function.
Experts did include distribution as a primary activity in the marketing mix, however, distribution seemed to be defined more in terms of transaction channel activities than physical distribution ones.
Physical distribution pdf
In a study based on the automotive supply industry, Jayaram et al. On the other hand, there was a similar movement by those interested in the purchasing activity. These should cover aspects like re-order levels, purchasing procedures and customer service levels. Defining this business activity in this way does not provide guidance as to how to manage it. They can be important demand creators as well as customer losers. When I have thought of Distribution I think about Distribution Centres, the receipt of goods from suppliers, the storage and internal handling of materials, the fulfillment of customer and channel orders, the replenishment of goods into those channels, and the handling of customer returns. Physical Distribution Department: Some companies treat physical distribution as a separate area of marketing management and maintain a separate physical distribution department. Shippers are those organisations and individuals such as manufacturers, middlemen, customers, and others to whom the carriers provide transportation services. For example, to be successful needs precise synchronization from supplier right through to production units to retailers to consumers. Importance of logistics in how purchasing managers evaluate suppliers The nature of physical distribution and logistics 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. And, the third is, replenishing or reordering costs order processing costs , such as preparing and placing order; transportation, insurances and wastage during movement; and costs of receiving, inspecting, and handling materials. Distribution includes things such as packaging, storage, order fulfillment, and handling customer and vendor returns. He appoints needed experts in his department to assist him carrying different types of activities related to physical distribution.
Physical Distribution Committee: In order to manage distribution activities effectively and efficiently, many companies formulate a permanent committee. Order processing and dispatching officer 5.
Types of physical distribution
Complexity The first and most obvious implication is that the web of interrelationships it introduces poses considerable problems in its planning and management, particularly when trying to optimize the performance of the system. The study and practice of physical distribution and logistics emerged later. The main regulatory bodies may include: i. Materials management is primarily concerned with elements that facilitate the flow of goods and raw materials into and through the organization. Over a 2-year period, 50 per cent of purchasing managers stopped using a supplier because of slow or inconsistent service. Conclusion In summary I believe that Distribution and Logistics are largely synonymous. Therefore, the manager should decide on the optimum order size to reduce total cost of inventory.
A company at the forefront of developing Just-in-Time techniques in its relationship with suppliers is the Toyota Motor Company. Similarly, the mode must be easily available. The Organizational Context Explained Part of the issue requiring clarity here probably lies in the context of the Organization in question.
The Organizational Context Explained Part of the issue requiring clarity here probably lies in the context of the Organization in question. A total systems approach to physical distribution i. Trade-offs between elements A second implication is that in trying to optimize the performance of the total system we are confronted with trade-offs between the different elements; attempts to optimize performance of one part of the system without regard to the other elements tends to result in lower performance for the system as a whole. Manufacturers need to know that they will receive deliveries at the right time. Physical distribution was the first to emerge, whereas Business logistics, with its broader scope that includes inbound movement, followed later. Each of the experts in a committee has necessary skills and experience to handle specific group of activities. Defining this business activity in this way does not provide guidance as to how to manage it. In the distribution vs. In the context of logistics, successful servicing of customers using a JIT system fundamentally alters the design and operation of the logistical process. Distribution takes into account transportation costs, transportation methods and physical obstacles that could impede or delay the delivery of goods. After proper analysis of various relevant variables, the suitable structure of organisation should be created and implemented. In managing distribution, each company has to contemplate the most affordable ways to move goods to customers.
Reasons for increased attention to this function are the result of a continued search for cost savings in distribution and stockholding.
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