Physical Distribution

Physical distribution management (PDM) is concerned with ensuring the product is in the right place at the right time. Physical distribution management (PDM) is concerned with the flow of goods from the receipt of an order until the goods are delivered to the customer.

Area of Physical Distribution

From the end of production line to the customer

From the source of supply to the beginning of the line Transportation Warehousing Material Handling Protective Packaging Inventory Control Plant and Warehousing site selection Order processing Market forecasting Customer Service

Basic output of physical distribution systems

Delivery - reliability and frequency; Stock availability - the ability to meet orders quickly.

Warehousing & Distribution Centers

Storage (Godowns)
R/M,

WIP Inbound logistics Near to Production facility

Storages

used for Seasonal Demand Supply Pattern Aging products Stock piling

Warehousing
Storing

of Finished Goods Outbound logistics Near to market or distribution centers

Warehouses used for(Functions)

Economic

Bulk Breaking Consolidation Stock Piling Value added Services (Packaging & Labelling)

Operational

Receiving of goods Storage Proper handling Order Receiving Dispatching Documentation

Types of Warehouses

On the basis of ownership

--Private Warehouse --Public Warehouse 1. Operating cost 2. Investment 3. Control 4. Risk 5. Tax Advantage 6. Economies of scale

On the basis of Services

Bonded

Warehouse Field Warehouse Cold Storage Distribution Warehouse Buffer Storage Warehouse Export and Import Warehouse

Warehousing Strategy

Overall corporate objectives

Availability

of goods to customer Degree of customer service to be offered/desired Min. total Distribution costs

Considering environment scenario

Demand

Pattern Buying Behavior Stock out situation reaction of customers Warehousing strategies of competitors

Analysis of firms resources

Financial

condition Brand Equity Warehousing required

Public OR Private Warehouse decision

Centralized

or Decentralized Locations of warehouse cost of warehouse

Warehouse Design

Purpose of the Facility Layout of the Facility Space requirement and aisle layout

Distribution Centers

Stresses on movement of material than storage.