Physical Distribution Issues

Physical Distribution Issues:

Problems involving efficient transportation and storage of products: 

• type of transport / size and weight of the output (cost vs speed),

• temperature required (refrigerated / frozen)

• type of packaging (stackable / use pallets?) 

• warehousing at mass distribution centre (cost), 

• inventory control systems, 

• delays / perishability of product,  

• damages / fragility of product, 

• customer waiting time.

Different outputs will need to manage different issues in distribution. Use Business Studies Madness cards to imagine the issues in different firms.

Different types of business customers downstream (B2B) will have different requirements to a business selling B2C directly to consumers. Your business' sale to a business customer is their Cost of Goods Sold in their own Supply Chain. Your business customers are keen to have the most efficient, cost-effective and damage free delivery as possible, just like your business is with your own suppliers.