Costco Logistics and Physical Distribution Management

EBU 609
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INTRODUCTION...........................................................................................................................3
Part I: General background..............................................................................................................3
Part II: How does Costco manage its logistics and physical distribution activities?.......................4
Part III: How does the COVID-19 pandemic influence the Costco’s logistics and physical
distribution management?................................................................................................................5
Distribution Management:...............................................................................................................5
Part IV: How does Costco manage the logistics and physical distribution activities of its product
leftovers?..........................................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
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INTRODUCTION
Logistics and Physical Distribution Management is an essential aspect that allows company to
manage distribution and storing of its products and services (Froio and Bezerra, 2021). Present
report has been conducted on Costco which is a multination corporation. Present report is inclusive
of the manner in which company is managing their logistics and distribution activities along with
the impact of covid-19 pandemic on organisation distribution management. Furthermore, report
includes the way in which company manages there logistic and physical distribution activities of
their product leftovers.
Part I: General background
Costco Wholesale which is also known as Costco is performing their business operation as a
multinational corporation which is operating in the mode of membership only and big box retail
stores. This organisation is expanding their range of products gradually in which they are now
selling different type of product categories that include perishable items, electronics, furniture,
clothing, buying and more (Golpîra, Khan and Safaeipour, 2021). In this company frequently
changing inventory system is being adopted that offers them to have a good Logistic and
physical distribution management.
Part II: How does Costco manage its logistics and physical distribution
activities?
Logistic and physical distribution activities are mainly concerned with transportation of raw
material, merchandise or by products. This process also includes consumer service transportation
and logistics, order processing inventory control and more. With the help of this process
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