Physical Distribution, Warehousing

8/2/2019 Physical Distribution, Warehousing

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Physical Distribution

Physical distribution management (PDM) is

concerned with ensuring the product is in theright place at the right time.

Physical distribution management (PDM) isconcerned with the flow of goods from thereceipt of an order until the goods aredelivered to the customer.


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Area of Physical Distribution

From the end of production line to the customer

From the source of supply to the beginning of the line

Transportation

Warehousing

Material Handling Protective Packaging

Inventory Control

Plant and Warehousing site selection

Order processing Market forecasting

Customer Service


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Basic output of physical distribution

systems

Delivery - reliability and frequency;

Stock availability - the ability to meet orders

quickly.


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Warehousing& Distribution Centers

Storage (Godowns)

R/M, WIP

Inbound logistics

Near to Production facility

Storages used for-

Seasonal Demand

Supply PatternAging products

Stock piling


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Warehousing

Storing of Finished Goods

Outbound logistics

Near to market or distribution centers


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Warehouses used for(Functions)

Economic

Bulk Breaking

Consolidation

Stock Piling

Value added Services (Packaging & Labelling)

Operational

Receiving of goods

Storage

Proper handling Order Receiving

Dispatching

Documentation


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Types of Warehouses

On the basis of ownership

--Private Warehouse --Public Warehouse

1. Operating cost

2. Investment

3. Control

4. Risk

5. Tax Advantage

6. Economies of scale


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On the basis of Services

Bonded Warehouse

Field Warehouse

Cold Storage

Distribution Warehouse

Buffer Storage Warehouse

Export and Import Warehouse


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Warehousing Strategy

Overall corporate objectivesAvailability of goods to customerDegree of customer service to be

offered/desired

Min. total Distribution costs Considering environment scenario

Demand Pattern

Buying Behavior Stock out situation reaction of customers

Warehousing strategies of competitors


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Analysis of firms resources

Financial condition

Brand Equity

Warehousing required

Public OR Private Warehouse decision

Centralized or Decentralized

Locations of warehouse

cost of warehouse


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Warehouse Design

Purpose of the Facility

Layout of the Facility

Space requirement and aisle layout


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Distribution Centers

Stresses on movement of material thanstorage.

Physical Distribution, Warehousing

Documents