7.02Classify the activities of physical distribution.

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Presentation transcript:

7.02Classify the activities of physical distribution

Physical distribution is… Organizing and moving products through the channels Logistics

Transportation is… Place A Place B Methods include: –Trucking or motor carriers –Railroads –Marine shipping –Pipelines –Air cargo services

A transportation company… Help move small packages from A to B For example: US Postal Service

Methods to store merchandise… Storage –Harry Potter books are held until the retailers place their order Private vs. Public Warehouses

Methods to store merchandise… (con’t) Distribution center –JC Penny’s has a distribution center in Atlanta to reach all stores in the southeast Bonded warehouse –U.S. Customs stores imported products until duties have been paid

Methods of handling inventory include… Products ordered are received, checked, marked (priced), and transferred Receiving record

Methods of handling inventory include… (con’t) Check the received merchandise –Blind check method –Direct check method –Spot check method –Quality check method

Inventory is… Storing of merchandise before it is sold Perpetual –Harris Teeter electronically restocks items as they are sold Physical –Sam’s Club physically counts each item in the warehouse