1. 7.02Classify the activities of physical distribution

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

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

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

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

6. 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

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

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

9. 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