The major activities involved in physical distribution of product are summarised below –
1) Order processing: It involves various steps like order placing, transmission of order, maintenance of inventory, delivery of goods, etc. The physical distribution should ensure speedy and proper order processing. Proper and timely order processing provide satisfaction to the customers.
2) Transportation: It provides place utility. It refers to physical movement of goods from the place of production to the place of sale. The goods are brought to some place near to the market so that they could be made easily available with the increase in demand.
3) Warehousing: It provides time utility. Generally there is time lag between production and consumption. After production the good are properly stored and assorted in godowns or warehouses before the actual sales take place.
4) Inventory maintenance: The firms maintain inventory to ensure timely supply of product. It helps in regulating the price in the market as well as in fulfilment of demand in best possible way.
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