What is Physical Distribution

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]

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.
Integrated Logistics Management
- 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.