Physical Distribution in Supply-Chain Management (Logistics)

Physical distribution in Supply-Chain Management (Logistics) is the process of getting the right goods to the right place at the right time. It is the management of the movement of physical goods through the supply chain from production to delivery. This includes the ordering, warehousing, movement, and delivery of goods from the manufacturer to distributor, retailer and ultimately the consumer. Physical distribution is a critical component of supply-chain logistics, as poor execution can lead to customer dissatisfaction, loss of revenue and diminished company reputation. To ensure customer satisfaction, timely and efficient physical distribution must be managed carefully. This includes well-developed distribution plans, accurate picking and packing of orders, managed inventory, reliable methods of transport, and timely customer service. All of these components are integral parts of an effective Physical Distribution process.