ABSTRACT

Physical Distribution embraces the process from the warehouse-ready product to delivery to the customer. The stocks of the end products from all the suppliers are transported via various distribution centres (DC) in the country. The DC will place all goods received in the warehouse, after which the orders are delivered to the shops. Products from one supplier go to different shops. Physical Distribution is a very important process for many companies and comprises three sub-processes, namely warehouse management, stock management and transport. Physical Distribution is applied as follows: distribution structures, choice of places of business, management of the distribution network, physical processing of the orders, order entry, reception and storage of goods, order-picking, packing and delivery, transport, and costs. Well-organised Physical Distribution provides the enterprise with benefits in the area of the logistics of service to the customers in relation to delivery times and reliability of delivery.