Directorate of distance education

References
D.K. Agarwal
, LOGISTICS & SUPPLY CHAIN MANAGEMENT, 
Macmillan 
India Pvt. Ltd. New Delhi, 2008
N. Chandrasekaran, 
SUPPLY CHAIN MANAGEMENT, 
Oxford University 
Press, 2010
Satish K. Kapoor & Purva Kansal,
BASICA OF DISTRIBUTION 
MANAGEMENT - A LOGISTICAL APPROACH, 
Prentice – Hall India, 2003.
Sunil chopra, Meindl & Kalra,
SUPPLY CHAIN MANAGEMENT,
 Pearson 
Education, India, 2009 Bowersox & Closs,
LOGISTICS MANAGEMENT, 
Tata McGraw Hill, New Delhi, 2008

---

Notes
3
UNIT – I
Unit Structure
Lesson 1.1 - Physical Distribution
Lesson 1.2 - Marketing Channels
Lesson 1.3 - Channel Members
Lesson 1.4 - Market Segmentation
Lesson 1.1 - Physical Distribution
Learning Objectives
After reading this lesson you should be able to 
➢ Understand the concept of Physical Distribution and its importance
➢ Identify the functions and principle components of physical 
distribution
➢ Analyze and Understand the distribution strategy
➢ Know the importance of fast changing distribution environment
Physical Distribution
1. Physical Distribution System Introduction
Physical distribution is the movement of materials from the 
producer to the consumer. This movement of materials is divided into two 
functions: 
Physical supply
is the movement and storage of goods from 
suppliers to manufacturing. 
Physical distribution
is the movement and 
storage of finished goods from the end of production to the customer. The 
particular path in which the goods move – through distribution centres, 
wholesalers, and retailers – is called the channel of distribution.

---

Notes
4