What are physical distribution firms marketing?
Michael Gray
Updated on March 05, 2026
Physical distribution includes all the activities associated with the supply of finished product at every step, from the production line to the consumers. Important physical distribution functions include customer service, order processing, inventory control, transportation and logistics, and packaging and materials.
What is the example of physical distribution?
Rodrigue and Hesse write “Physical distribution includes all the functions of movement and handling of goods, particularly transportation services (trucking, freight rail, air freight, inland waterways, marine shipping, and pipelines), transshipment and warehousing services (e.g. consignment, storage, inventory …
What is physical distribution in business?
Physical distribution is the set of activities concerned with efficient movement of finished goods from the end of the production operation to the consumer. Physical distribution is part of a larger process called “distribution,” which includes wholesale and retail marketing, as well the physical movement of products.
What are the activities of a physical distribution company?
It includes all those activities which help in efficient movement of goods from producer to consumer, such as transportation, warehousing, material handling, inventory control, order processing, market forecasting, packaging, plant and warehouse location and customer service.
Why is physical distribution important to a marketer?
Physical distribution is an important part of distribution strategy. Because its objective is to maximize the level of customer service, marketers must consider total costs. The various elements in physical distribution include customer service standards, transportation, warehousing, materials handling, inventory control, and order processing.
What are the two dimensions of physical distribution?
There are two dimensions to physical distribution process, the flow of information from the individual customer or organizer to the producer and the flow of materials from the producer to the consumer or the user. A channel is a passageway that allows the happening of certain processes. Marketing is understood to be an exchange process.
Which is an example of a physical distribution channel?
The physical distribution considers many sales distribution channels, such as wholesale and retail, and includes critical decision areas like customer service, inventory, materials, packaging, order processing, and transportation and logistics.
