7.02Classify the activities of physical distribution

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7.02 Classify the activities of physical
distribution
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Physical distribution is

• Organizing and moving products through the
  channels
• Logistics

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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

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Methods to store merchandise

• Storage
• Harry Potter books are held until the retailers
  place their order
• Private vs. Public Warehouses

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Methods to store merchandise (cont)

• Distribution center
• JC Pennys 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

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Methods of handling inventory include

• Products ordered are received, checked, marked
  (priced), and transferred
• Receiving record

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Methods of handling inventory include (cont)

• Check the received merchandise
• Blind check method
• Direct check method
• Spot check method
• Quality check method

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Inventory is

• Storing of merchandise before it is sold
• Perpetual
• Harris Teeter electronically restocks items as
  they are sold
• Physical
• Sams Club physically counts each item in the
  warehouse