Physical distribution has three primary concerns.
• Receiving parts or finished goods
• Storing them until they are required
• Delivering them to the customer
The transfer of material from facility to facility, and ultimately to the customer, is the responsibility of the firm’s distribution channel. A bottleneck in this process could have detrimental consequences, such as increasing lead time for completion of a product, which raises costs and reduces margins, and could potentially lose the sale and future patronage. Therefore, the company must not take this activity too lightly and should plan accordingly.
Supply chain managers must address several important distribution decisions. This includes which transport mode to ...
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