Physical Distribution and Logistics

Study Notes

Physical Distribution and Logistics

Physical distribution is also referred to as logistics.
The four components of physical distribution are:
- Transportation
- Warehousing
- Inventory management
- Order processing

Vendors and Carriers

Vendors are suppliers or sellers of products or services.
In the context of physical distribution, vendors refer to the suppliers of products being transported and distributed.
A carrier is a company or individual responsible for transporting goods from one location to another.
Examples of carriers include:
- Shipping companies
- Trucking companies
- Courier services

Inventory Management

Inventory refers to the stock of products or materials held by a business for sale or production.
Inventory includes both:
- Finished goods ready for distribution
- Raw materials

Modes of Transportation

There are five modes of transportation commonly used in physical distribution:
- Road (trucks)
- Rail
- Air
- Water (ships)
- Pipeline
Advantages and disadvantages of each mode of transportation:
- Road (trucks):
  - Flexibility and accessibility
  - Traffic congestion and limited capacity
- Rail:
  - Cost-effective for long distances
  - Limited accessibility and fixed routes
- Air:
  - Fast and efficient for long distances
  - Expensive and limited capacity for bulky goods
- Water (ships):
  - Cost-effective
  - Slow and dependent on weather conditions
- Pipeline:
  - Not mentioned in the provided text

Description

Test your knowledge on physical distribution, including its components, vendors, and carriers. Learn about the roles of each in the logistics process. Understand the concept of physical distribution and its importance in business.