Physical Distribution

Goods distribution channels to distinguish between transfer property rights and channels for physically move the goods. If the former is associated with the distribution channel (channel of distribution), then the second the activities of the so-called physical distribution (physical distribution).

Physical distribution are all activities to move in a certain quantity of goods, to a certain place, and in period of time. This can be either a physical displacement displacement finished goods from production line to the final consumer and the displacement raw materials from source to production line. These functions in physical distribution include:

Transportation

Should use appropriate and efficient way to move goods to distant places. This is the main function of physical distribution. Alternatives modes of transport could include rail (rail), water (boat), truck, air (plane), and using a special pipeline.

Storage and Warehousing

Storage or warehousing is the storing of goods for while, waiting to be sold or shipped further.

Central Inventory

Choose the best alternative, if the storage should be centralized or dispersed.
 
Material Handling

Meterial handling must use the right tool for the move the goods to a close, as to the warehouse, to vehicles, the retail store, and so forth.

Border Processing

Border processing are activities such as the determination delivery requirements, prepare documents, and others.

Protective Packaging

A determination of containers of goods to avoid various losses incurred during shipping. Companies that assist in the process Physical distribution is called facilitator or facilitating agencies. Facilitator may include transportation companies, insurance companies, warehouse leasing companies (public and private warehouse), finance companies, and so forth. It should be noted that facilitator is not a member in a distribution channel.