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Definition: Physical Distribution Management PDM
Physical distribution management (PDM) caters to the actual movement of products through the various channels of distribution. This field of study is concerned with various aspects related to transportation of the goods, the main of which is transportation cost.
Besides, it also analyses the best possible way of storing the goods in and off transit, viz. warehousing. PDM thus takes into account the study of inventory management, handling and packaging. Along with these, a physical distribution manager has to also take care of marketing, customer relations and order processing activities.
Among the 4 ‘P’-s of marketing, place has traditionally been viewed as the least dynamic parameter. But even after all the manufacturing and promotion, if the product cannot be delivered at the right place at the right time to the consumer, the resulting customer dissatisfaction can make the company profits go for a toss. So saving cost in distribution results in long-term loss. Again exceeding customer requirements by investing in unnecessary distribution activities is also not recommended. Thus, nowadays, scientific optimisation methods combined with efficient logistics are applied for managing goods distribution.
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