Chapter 7 Flashcards
(12 cards)
• is the movement of goods, products, and raw
materials between warehouses, factories, and distribution centers, and
sending finished products to the customer.
Physical distribution
KEY COMPONENTS OF PHYSICAL DISTRIBUTION
Transportation
Warehousing
Inventory Management
Order processing
Material Handling
Warehouse management system
PROCESS OF PHYSICAL DISTRIBUTION
Warehousing
Inventory management
Order processing
Delivery
Returns
OBJECTIVES OF PHYSICAL DISTRIBUTION
- Getting the right product, at the right place, at the right time, in right
quantity, and the right customer at the lower cost - Attain customer satisfaction
- Profit maximization
- Proper co-ordination of distribution activities
- To provide better service at lower prices
- To increase profit margin
is a storage facility primarily used
for the short-term storage of goods and
supplies. Depots are strategically located
close to delivery destinations to facilitate the
rapid distribution and delivery of products
to customers.
-They are typically smaller than warehouses
and are designed to handle smaller
inventories, making them ideal for industries
that require quick and efficient delivery.
depot
is a large-scale storage
facility designed to store substantial
quantities of goods over extended
periods.
Unlike depots, warehouses are usually
located away from city centers and
are equipped to handle complex
inventories, including individual parts,
components, and finished products.
warehouse
DEPOT AND WAREHOUSE SITE CONSIDERATION
- Proximity to Suppliers and Customers
- Workforce Availability and Labor Costs
- Access to Transportation Networks
- Real Estate Costs, Local laws and Taxes
- Building Availability and Expandability
- Environmental Risk
: Each industry has its own unique
demands. For example, the food industry needs to ensure proper
temperature control and timely delivery, while the fashion industry
focuses on quick fashion and fast delivery.
Industry Characteristics
: Understanding customer expectations, such as
delivery speed, reliability, and customization options, is crucial.
Customer Needs
: Analyzing the logistics strategies of
competitors can provide insights into best practices and areas for
differentiation.
Competitive Landscape
: Leveraging technology, such as Transportation
Management Systems (TMS) and Warehouse Management Systems
(WMS), can significantly improve efficiency and reduce costs.
Technology
: Incorporating sustainable practices into logistics
operations can reduce environmental impact and enhance the
company’s reputation.
Sustainability
