Type: Management
Pages: 5 | Words: 1390
Reading Time: 6 Minutes

The principal task of physical distribution is ensuring the availability of products to customers in the right places, the right time and the right quantities. It is focused on as an initiative taken by a business to satisfy customers’ demands. The concept of order cycle is an important one when addressing the concept of an efficient physical distribution system. Physical distribution can be referred to as a four-step process, which involves transmission and placement of an order by the customer to the supplier. On receiving the order, the supplier processes it and physically assembles the goods ordered by the customer (Blecker, Kersten & Cornelius 2007). On processing and physically assembling the orders, the products are delivered to the customer. Organizations have to ensure the delivery of finished products to customers, as well as raw materials movement to the organization. The success of an efficient logistics management system is measured by the timeliness of the delivery of finished products to the final customers. The concept of physical delivery is complex due to the complexity of product packaging, which is composed of a mixture of goods and services. Physical goods include all predominantly physical products, such as cars and consumer electronics, while services include banking industry, insurance, education, television and other services. The concept of moving products to customers is referred to as outbound or outward logistics, while moving raw materials to the organization is referred to as outward logistics. Therefore, logistics management is the entire process of material and product movement into and out of the firm. Physical distribution is the process of moving products outward from the organization or the manufacturer to the end user.

There are various forms of logistics operations, which include supply chain management, reverse logistics and maritime logistics. However, supply chain management has been an important concept in the physical distribution of products, as it involves the whole concept of handling production procedures in a broader sense (Taylor 2005). Its main aim is to create unique and individualized value to the end user in the organization. Supply chain management is the integration of three main activities, which include purchasing, manufacturing and transporting. It includes the whole process beginning from the purchase of raw materials and the production of products to the management and distribution of the final product to the customer.

Logistics management has been a global concern for many organizations with the aim of improving productivity and profitability. The whole aspect of logistics management facilitates the organization’s acquisition of raw materials consumed in the process of production, as well as the movement of finished products to the end users. It includes the concepts used in order management to facilitate customer satisfaction, as well as to ensure that the organization reduces the cost of operations. In addition, material handling cost and packaging cost go hand in hand, since these are essential activities that ensure the security of products, as well as facilitate the process of marketing.

The concept of order management should involve a well-developed and planned system, which facilitates the internal operations of the organization in order management, as well as ensures customer focus in the system. For example, the developed system should include the inquiry by customers, whereby the organization ensures that quotations are given. On receiving quotations, the customer places an order with the organization, where on receiving the order, the latter validates and reserves the inventory. Customers make a reservation of inventories, whereupon the organization determines the delivery date (Spekman, Kamauf & Myhr 1998). The logistics management system should ensure the consolidation of orders to facilitate the delivery system and planning and building of loads for the delivery process. After building loads, the organization should select a carrier and determine the cost of transporting goods. Such a well-developed and planned order management system will facilitate the development of an online system..

Organizations have adopted various approaches taken towards ensuring customer satisfaction and cost minimization. These include the integration of value chain, which facilitates the integration of the minimization of cost and the reduction of risks, reducing the cycle time. it will enable the organization to develop customer-oriented manufacturing processes, which will be flexible and responsive to the demand of customers (Zackon & Winger, 2000). It will include the adoption of appropriate technologies in the processes of forecasting demands and developing a faster response period and flexibility.

In the modern economy system, packaging in Australia is an imperative component of the modernized society. Besides, it is an important practice in material handling, since without packaging, it will be impossible to handle materials due to damages. It will be costly to the organization, since it will be difficult to even market products. The concept of packaging has tremendously changed overtime to be a dynamic factor not only at the organization level, but also at the society level (Orotongroup 2010). These changes have been beneficial to the organization in terms of cost reduction and to the community in terms of the efficiency of products. It has developed overtime; and in the current period, people can dispense their preferred dosage at their own time, rather than pick packaged products from the shelves of supermarkets.

The practice of packaging is imperative for the success of any business. Efficient packaging facilitates cost reduction and organizations’ marketing activities. Packaging also ensures the security of products and their preservation. In Australia, there have been a number of cases involving the tampering and despoliation of packaged products. It has also developed to be an issue of global concern in the packaging supply chain. The increased changes of the practice of packaging are driven by the changing needs of consumers, demographic changes and business pressures. In addition, technological advances and environmental issues have drawn global attention. The demands of consumers have consistently changed due to rising demands for convenience in regard to the availability of different sizes and the ease of opening a package (Australian Government 2009). Organizational concerns involve the reduction of environment impacts connected with corporate social responsibility and the reduction of costs to increase organization’s profitability. Packaging is an essential component of the marketing process, since strong brands are differentiated based on it. The concept of warehousing in product distribution is essential in facilitating product movement from the manufacturer to market outlets. Warehousing is essential in the manufacturing process, as well as the distribution of products to the market. The current system in warehousing has shifted from the use of single warehouses to the current use of consolidated warehouses and the formation of distribution centers. It has led to improvements in the transport system, since pressure increases to improve logistics performance.


Logistics management in the current global business is an important aspect to consider, since it involves the whole aspect of raw material acquisition and the delivery of the finished products to the end users. The efficiency of the logistics management system is measured by how well an organization can deliver the correct quantity timely and to the right place. There are various aspects in logistics management, which include order management, material handling and packaging and physical distribution to the final users. Order management should be customer-focused to ensure customer satisfaction. The concept of packaging should consider such trends as the environment concern and the adoption of the latest technology. The concept of physical distribution should focus on facilitating the order cycle and ensure the timely delivery of the right quantity of products.

An organization considering adopting an online store should consider all aspects connected with logistics management, since an online store represents a global approach marketing system. The organization should consider all aspects regarding order management, which should be focused on the customer to ensure his or her satisfaction. The order management system should ensure the timely delivery of the right product at the right time and to the right place. The packaging system adopted by the organization should ensure it is in line with the current trends of packaging resulting in cost reduction, as well as to facilitate the marketing of products. The physical delivery of products to the end user is the most essential part of the process. The concept of physical delivery depends on the type of products to be delivered. Some organizations are involved in delivering physical products, while others are involved in service delivery. Therefore, an online store should consider the product, which the organization wishes to supply to end users.

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