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Physical Distribution (Marketing Logistics)

Marketing Logistics: Planning, implementing, and controlling the physical flow of materials, final goods, and related information from points of origin to points of consumption to meet customer requirements at a profit.

Supply Chain Management: Managing upstream, downstream, and reverse value-added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers. [Image of Logistics management]

Improved logistics provides better service or lower prices to customers. * Competition is centered around delivery and logistics. * Good logistics results in high cost savings. * IT and automation improvements lead to efficient distribution. (e.g., software POS scanners, RFID tags, satellite tracking). * The need for smarter logistics management arises from the huge variety of products being shipped. * Sustainable supply chains are necessary due to the carbon footprint of transportation, warehousing, and packaging.

Warehousing:
- Storage warehouses store goods for moderate to long periods.
- Distribution centers are highly automated warehouses designed for efficient order fulfillment and delivery.

Inventory Management:
- Maintaining the right quantity of inventory is crucial.
- Just-in-Time (JIT) logistics systems are used to reduce costs.

Transportation:
- Carrier choices affect product pricing.
- Modes include trucks, rail, water, pipeline, and air.
- The Internet is a mode for digital products.
- Many companies use multi-modal transportation.

Logistics Information Management: * Information sharing is done through Electronic Data Interchange (EDI).
- Vendor Managed Inventory (VMI) systems are used for product replenishment.

Emphasizes teamwork within the company and among channel partners to maximize distribution system performance.

Third-Party Logistics (3PL) Provider: An independent provider that performs any or all functions to get a client's product to market.