PHYSICAL DISTRIBUTION

AND LOGISTICS

G.ANIL KUMAR
18L31E0095
PHYSICAL DISTRIBUTION

 The word Physical Distribution has so many different meanings

beyond that which is associated with Supply Chain Management that
we have restricted these definitions to those only consistent with our
context.
 Investopedia defines Distribution as “Distribution management refers
to overseeing the movement of goods from supplier or manufacturer to
point of sale. Distribution management is an overarching term that
refers to numerous activities and processes such as packaging,
inventory, warehousing, supply chain and logistics.”
 And the BusinessDictionary.com describes Distribution as “The
movement of goods and services from the source through a distribution
channel, right up to the final customer, consumer, or user, and the
movement of payment in the opposite direction, right up to the original
producer or supplier.”
LOGISTICS

 According to Wikipedia, “Logistics is the management of the flow of

things between the point of origin and the point of consumption in
order to meet requirements of customers or corporations. The
logistics of physical items usually involves the integration of
information flow, materials handling, production, packaging,
inventory, transportation, warehousing and often security.
 Techopedia defines Logistics as, “Logistics management is a supply
chain management component that is used to meet customer
demands through the planning, control and implementation of the
effective movement and storage of related information, goods and
services from origin to destination.
 Logistics management activities typically include inbound and
outbound transportation management,materials handling, order
fulfillment, logistics network design, inventory management,
supply/demand planning, and management of third party logistics
services providers.”
 What is the difference between
Logistics and Distribution?

 On the surface some people may consider them

synonymous. Without consulting a dictionary both Logistics
and Distribution suggest imagery involving the movement
of goods.
 But to anyone who works in Supply Chain, in particular with a
title including either the term Logistics or Distribution, or if
you work in a Distribution Centre or for a Logistics company,
then there are distinct differences between these words.
Comparing Logistics and Distribution

 When I have thought of Logistics I think of Freight management,

Transportation, Carriers and the overall planning and management of
the movement of goods throughout the end to end Supply Chain. The
nodes in Logistics include suppliers, distribution channels, logistics
service providers, and customers.
 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.
 In short I would have considered Distribution to be a subset of
Logistics.
 But when you look at the definitions that we’ve provided here, from
very reputable sources, it is honestly very difficult to discern any
differences between the two terms.
The Organizational Context
 If you are a part of a very large, multinational corporation, there is
great likelihood that there is a Logistics department, a Distribution
Centre, a Freight management function, a Warehouse team, an
Inventory management organization, and a Planning team.

 The business in that situation is so large that activities are broken

down into smaller, more focused functions to cover each of the
responsibilities associated with Logistics and with Distribution. Titles
and Organization structure are also likely to reinforce these
distinctions.

 But if you are a part of a small company, by comparison, then you

know that most people are doing many different tasks and doing
whatever is required to get the job done. They are “jacks-of-all-
trades”. One minute they could be calling suppliers, the next minute
they are arranging for carriers to pick up goods, then they are doing
some planning, releasing orders, counting inventory and negotiating
with suppliers.

 In those cases the practical distinction between Logistics and

Distribution becomes blurred because it is not relevant.
Conclusion

 In summary I believe that Distribution and Logistics are largely

synonymous. They can be used interchangeably although I think
that the general understanding and common application of the
phrases would suggest that Logistics is considered to be a more
all-encompassing, end to end Supply Chain term.
 Be that as it may anyone involved in Distribution should take a
back seat to no one.