Function of Physical Distribution Management and Distribution Channels

1919 WordsApr 24, 20138 Pages
Revision of DTM for chapter 1 & 2 Function of physical distribution management and distribution channels 1) Definition of physical distribution management – Used in manufacturing and commerce to describe the broad range of activities concerned w/ the efficient movement of finished products from end of production line to consumer. * Emphasizes the flow of materials from the point of manufacture industrial user * Implies the control of the flow End consumers Products supply > Warehousing > Distributution planning > Products delivering > Market outlets > Products display > Customers > Products Demand | 2) Role and importance of distribution – To bridge the geographical and time gaps between the…show more content…
Thus, out-of-stock conditions result in lost sales, loss of goodwill and loss of customers. * Order processing [Having a set of procedures for handling and filing orders] Eg. Provision for billing, granting credit, preparing invoices and collecting accounts. * Transportation [Involves shipping of products to customers] 4) Functions of Distribution Centres * Receiving (Unload incoming material, count the material, and record any shortage/damage.) * Inspection (Determine if the product meets the specifications and requirements of the purchase order) * Inventory control (Materials are moved from the inspection area to picking location. To control the location and quantities of materials on hand, it is important to assign responsibility for routing materials to their proper locations.) * Storage (Physical act of moving materials from inspection and placing them in storage) * Replenishment (When distribution management assigns a special area for picking stock, it is necessary to move stock in cartons from general storage area to replenishment area.) * Order Picking (Performed after the distribution center has received an invoice. The order picker goes about selecting items in the quantity requested and unitizing them in a container/a pallet/station.) * Checking (Perfoms checks on each order for accuracy of item, quantity and condition before packing and shipping) * Packing and marking (Less-than-full-carton quantities of
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