The components of Physical Distribution are:
(i) Customer Service: Customer service is the important department as it forms the bloodline of the company. It is the process of providing assistance and support to the customers who have availed the product or service from the company. Customer satisfaction is very important in any business and success of a business fully depends on timely customer service. Responding to customers in an effective way and providing the correct data to other departments to deliver the product in the right time to the right place and to the right person holds the key to the whole activity. With the right adaptive technology and tracking options it can be achieved.
(ii) Transportation: Transportation is concerned with movement of people and goods from one place to another and is one of the most concentrated factors in all the sectors of the world. The cost factor and mode of distribution is the base for other departments to operate, which basically functions on cost and commodity to be transported. There are wide variety of transportation models available with each one having its own advantages and limitations which are discussed below:
(a) Trucking Flexible and Growing: It is the most favoured transportation mode used by all business sectors and preferred by large scale companies too. It is beneficial in such a way that it is able to deliver the goods quickly to almost all the parts in the country, allowing fast and frequent movement from one place to another compared to any other mode. Trucks are majorly used for transactions that can carry large amounts of goods. Due to its high transportation cost, mostly perishable and high value items are shipped in air mode. Most of the medium business companies also use air mode for improved business sustainability
(b) Water Carriers Slow But Inexpensive: Ships can carry tons of load at a very low cost but the transit time from one place to another is high, only products that are durable loaded in ships and inland movements use small ships for transit.
(c) Water Carriers Slow But Inexpensive: Ships can carry tons of load at a very low cost but the transit time from one place to another is high, only products that are durable loaded in ships and inland movements use small ships for transit.
(d) Railroads Long Distance Shipping: Railroads are efficient in transporting bulk goods for long distance purposes where mainly commodities like coal, chemicals, and food grains are Transported.
(e) Pipelines—Specialised Transporters: Pipelines are used to transport natural gas, petrol and diesel, chemicals from ships to port and from port to remote areas in an efficient way.
(f) Warehousing: The process of storing the goods in a specific place for a duration is known as warehousing. Placing Warehouses at strategic locations helps in movement of goods easier and helps in delivery on time. Warehouses are the key to hold the finished goods safely and move out if demand arises and provide customers what they want on time. Goods are kept in warehouses to make more profits at the same time to meet customer demand, and maintain stock accordingly.
(g) Order Processing: Order processing is crucial in distribution because wrong order processing and misconceptions will lead to wrong delivery and dissatisfaction to the customers. When order processing is done there are many things that come along with it which includes inventory, quantity and mode of transportation and so on, where any wrong information can lead to serious issues including bad customer satisfaction and reduced profits.
(h) Protective Packaging and Materials Handling: Another important factor here is how you handle the materials and packaging. It differs on the quantity, nature of the product, size and weight of the product, mode of transportation involved during transit. Any wrong packaging or loose packing involved, it not only affects that particular product but also other goods in transit which is a total loss to the company.
