Logistics and Physical Distribution

Logistics and Physical Distribution - Physical distribution...

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Physical distribution gets it to customers Logistics:  is the transporting, storing, and handling of goods in ways that match target  customers’ needs with a firm’s marketing mix – both within individual firms and along a  channel of distribution  Physical Distribution:  is another common name for logistics. Physical Distribution customer service Customer Service Level:  how rapidly and dependably a firm can deliver what they, the  customers want.  PD  is a part of marketing that should be invisible to customers.  Most PD decisions involve trade-offs between costs, the customer service level, and  sales. Sales may be lost because of poor customer service or because of the high price  charged to pay for too high a customer service level.  PD focus on the whole distribution system The  PD concept  says that all transporting, storing, and product-handling activities of a  business and a whole channel system should be coordinated as one system that seeks  to minimize the cost of distribution for a given customer service level.  Both lower costs and better service help to increase customer value. 
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This note was uploaded on 02/23/2012 for the course BUSI 406 taught by Professor Perreault during the Fall '11 term at UNC.

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Logistics and Physical Distribution - Physical distribution...

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