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Identify the elements of the physical distribution system.
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High School Teacher
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There are many different elements of the physical distribution system.
This element determines the ways with which a customer's happiness is met. Some companies may only use automated services, and others may use live support. Customer service also encompasses timeliness and ease with which the customer finds when it comes to ordering products.
Transportation is another element in physical distribution. Companies must look at both cost and timeliness. Some companies may choose either ground or air to transport their products. Many of these decisions are based upon both need for the product and cost to the consumer or company.
Companies need to research warehousing. Some companies may choose to store their own goods, while others may chose to hire outside warehouses to store their goods. These choices are tied into transportation decisions as well.
Inventory control is very important. If a company has either a surplus or excess of product it can be an problem. Products which have specific shelf-lives can spoil if not inventoried properly. Other times, if an order is made and the product is not available a customer can be dissatisfied (which links to customer service).
Companies must make decisions regarding how customers order products. Some companies chose on-line ordering, catalogue ordering, or phone ordering. This decision depends upon cost, customer support, and product availability.
Packaging and Handling
Packaging and handling is important for both the product's quality and appearance and customer satisfaction. Products which are not packaged and handled properly may arrive damaged--lowering customer satisfaction. Curiously enough, the way a package looks can also impact a customer's satisfaction with the product.
Essentially, all of the elements of physical distribution are intertwined. Each impacts and is impacted by the next.
Posted by literaturenerd on June 16, 2012 at 6:18 PM (Answer #1)
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