What is the main objective of distribution?
Sarah Martinez
Updated on December 28, 2025
The objective of distribution function is to make or supply necessary goods to the large masses of customers living indifferent geographical areas. The objective of distribution is also to properly storing, handling and protecting the goods and supplying them to the consumers in good condition.
What are the objectives of distribution management?
What is the importance of physical distribution system?
The physical distribution function of a firm provides the place and time dimensions which contribute a basic element of marketing mix. The major components of physical distribution are transportation and warehousing.
What is physical distribution system?
Physical distribution is the set of activities concerned with efficient movement of finished goods from the end of the production operation to the consumer. Physical distribution is part of a larger process called “distribution,” which includes wholesale and retail marketing, as well the physical movement of products.
What is the importance of distribution?
Distribution mix plays an important role to increase the value of the products through delivery of goods in right quantity, at right place and right time. Distribution serves as link between producers and consumers.
What are the two types of physical distribution?
The Types of Physical Distributions
- Supplying Distribution. Supplying distribution is when businesses transport materials from supply to stock.
- Carriers.
- Intermodal Transportation.
- Cargo Planes.
- Sales and Distribution.
What are the main components of physical distribution?
The various elements of a physical distribution system are:
- Customer service:
- Order Processing:
- Inventory Control:
- Warehousing:
- Transportation Mode:
- Materials Handling:
What are the types of physical distribution?
What is it important to have good distribution channel?
Distribution channels are important to businesses as they allow for the smooth delivery of goods or services to a customer. If a business does not source the best collection of businesses for this purpose, it can lead to unhappy customers and an inadequate provision of services.
What is the primary function of the distribution channel?
The basic function of a distribution channel is to provide a link between production and consumption and to create time, place and possession utilities which constitute the added value of distribution.
What is distribution channel and its function?
The main function of distribution channel is to assemble the goods from different manufacturer and make it available to the consumer. Apart from this, the channel members also perform a number of other functions like buying, carrying inventory, selling, transporting, financing, etc. Facilitating Functions.
What are the three main methods of distribution?
There are three methods of distribution that outline how manufacturers choose how they want their goods to be dispersed in the market.
- Intensive Distribution: As many outlets as possible.
- Selective Distribution: Select outlets in specific locations.
- Exclusive Distribution: Limited outlets.
What are the functions of channel distribution?
The main function of distribution channel is to assemble the goods from different manufacturer and make it available to the consumer. Apart from this, the channel members also perform a number of other functions like buying, carrying inventory, selling, transporting, financing, etc.
What are the main methods of distribution?
What Are the Different Types of Distribution Strategies?
- Direct Distribution. Direct distribution is a strategy where manufacturers directly sell and send products to consumers.
- Indirect Distribution.
- Intensive Distribution.
- Exclusive Distribution.
- Selective Distribution.
- Wholesaler.
- Retailer.
- Franchisor.
The main objective of distribution is to make flow of goods from production place to consumption place. For this, the role of the distribution channel system and its members becomes very important.
Physical distribution refers to the movement of finished goods from a company’s distribution and fulfillment network to the end user. In ecommerce, physical distribution involves several ecommerce supply chain activities including warehousing, inventory control, order processing, retail fulfillment, and shipping.
What are the functions of physical distribution?
The major functions of physical distribution include customer service, order processing, inventory control, transportation and logistics and packaging. It is capable of creating a competitive advantage for organisations. Physical distribution and logistics were somewhat synonymous terms.
Distribution serves as link between producers and consumers. Producers can make flow of information and messages to consumers about their products, price, promotion etc. through channel members. Similarly, they receive information about customers, competitors and environmental changes from channel members.
Which is the description of physical distribution management?
the management and control of the activities involved in the storage, handling and movement of goods within an organisation and in their shipment to customers.
Which is an objective of the physical distribution system?
Physical distribution is thus, management of the physical flow of products and management and operation of the flow system. It is a process of managing the movement of the goods. Physical distribution has two broad objectives viz. consumer satisfaction and profit maximisation.
What does physical distribution mean in a business?
According to William J. Stanton___ “Physical distribution involves the management of the physical flow of products and the establishment and operation of flow system” According to the American Management Association___ “Physical distribution means moving of finished products from one end of a production line to customers’’.
Why is material handling important in physical distribution?
Material handling is the sub part of the total physical distribution system and helps in reduction in cost and better service to consumers. Effective management of material handling system leads to effectiveness of total physical distribution system and thereby makes it economical.
Why is the distribution system important to product planning?
Facilitates Product Planning: As the distribution system decided the level and nature of storage and transportation of organizational products, it is crucial to undertake distribution decisions at the time of product planning. Thus, it facilities product planning.
