Physical Distribution Channels

Events move goods from one particular place to another role in a given time is an activity referred to as physical distribution.

A system of distribution of goods from one place to another should be arranged in such a manner, as it deems appropriate at the time, so it can be aligned with efforts to maximize opportunities at the level of the amount of profitable sales.

Manufacturers of physical products and services will have to decide the best way to store and move goods and services to market goals. They usually have to abide by the physical distribution of its services - the company warehouse and transportation - to help with this task. Manufacturers know that the effectiveness of their physical distribution will have an influence big on customer satisfaction and company costs. Poor distribution system can destroy a real good product.

So, we can say that the basic physical distribution is a problem includes carriage of goods, storage of goods, and insurance risks that may arise.

A. transport

Transportation is an attempt by the transfer of goods from one place to another by means of a specific transport.

Means of transportation can be a vehicle that uses the road. Air, water (rivers, lakes, oceans) and for certain types of goods those that use the pipeline (eg, tap water, oil and gas). Based on the pattern of activities, forms of freight transport can be performed alone or called their own transport (private carrier), which is when the company / factory transport their goods by means of transport owned by the company / factory itself.

1. Freight carried by public transport (public carrier), ie when the goods are transported by means of public transport owned by other parties who have specific routes and schedules.
2. Freight transport is implemented using a suit contract (contract carrier). Goods transported by hiring / contracting transportation facilities owned by other parties.
3. Freight carried by way of using the services of freight forwarder or intermediaries (freight forwarder)

B. storage of Goods

The problem of storage of goods is important to note, since the goods are out of the production, transit point and destination. For companies that do not have their own storage facilities can use the warehouse is hired from another warehouse rent (public warehouse)

C. Risk coverage

The company certainly wants wares can be distributed safely to the destination. However, of course there are various risks that arise in the course, in which goods can be damaged due to the way transport is not good, fire accidents in warehouses or lost due to theft. To minimize the risk of this kind, the insurance company can use.