Role and Function of Physical Distribution Management Activities

RUNNING HEAD: LOGISTICS AND SUPPLY CHAIN MANAGEMENT 0
PHYSICAL DISTRIBUTION
MANAGEMENT

LOGISTICS AND SUPPLY CHAIN MANAGEMENT 1
Role and function of physical distribution management activities
Physical distribution management (PDM) involves controlling the movement
of materials and goods from their source to their destination. It is a highly
complex process, and one of the most important aspects of any business
(Ripanti & Tjahjono, 2019). The manager performs various activities and
approaches for managing and controlling the cost and expenditure of
transporting and warehousing the goods and services of the organization.
PDM support the organization to enhance the time and place utility and also
help the organization to decrease the cost of distribution. This strategy also
provides various other importances to the organization such as it enhance
the customer services which increase the loyalty among the customers
(Ferrell et al., 2019). In this essay “transportation”, “warehousing”, “material
handling”, “inventory control”, “packaging” activities are selected. Further,
discussion is made on the roles and functions of these activities by taking
“Walmart and P & G” companies examples.
Transportation is considered the approach which supports the organization in
transporting the goods of the organization from one place to another (Ali et al.,
2019). The organization adopt different strategies for managing the
transportation it is because through this organization can reduce the cost
and expenditure of the organization. Ali et al. describes that organization
also face issue in selecting the proper mode of transportation it is because
the better strategy help the organization to maintain smooth movement of
goods in the organization. Therefore, the estimation describes that selecting
the appropriate strategy and mode make the activity more economical and
quicker. The findings of the study reviewed that mode of transportation
should be adequate and appropriate because the whole activity is depend on
efficient movement (Garver, 2019).
The transportation play major functions in maintaining the service quality in
the organization that is it carry the goods and product for the target

LOGISTICS AND SUPPLY CHAIN MANAGEMENT 2
customers, this help the organization in managing the high quality and allow
the organization to send the goods of the organization to the right place
inadequate time period (Pohjosenperä et al., 2019). The other functions of the
transportation are that it provides the facility to the organization to manage
the supply chain in efficient manner. The major function is to deliver the
goods and services from the production stage and place to the consumption
according to needs and requirement of the customers and organization. The
air and ocean mode support and encourage the organization to provide
several varieties to the consumers and to raise the foreign trade. It is the
one of the reason which supports the organization to decide the location and
place for industrial unit.
The functions of transportation is explained through taking the example of
Walmart it was founded in the year 1962, and it is the one of well established
company which provide quality products such as clothing, electronics,
clothing etc (Daugherty et al., 2019). The company has 6,100 tractors and about
7,800 drivers to transport the goods to the consumers. The estimation shows
that company has about 6 centers for distributing the goods in this various
communities are develop for developing the strategies to response changing
environment and uncertainty. The company has more than 600 employees
which ship about 200 trailers on each and every day. This strategy maintains
various functions because of delivering the goods in timely manner and also
reduces the cost and wastage of the organization (Tejwani & Stock, 2019). The
study describes that because of delivering the goods in timely manner in the
2018, the number of customer’s increases in comparison to their
competitors. Further the role and functions of warehousing by taking an
example is discussed.
Warehousing is considered the approaches which help the organization in
making appropriate arrangements, in this activity organization retain the
goods and other raw materials adequately according to the needs and
requirements of the organization (Ellram & Murfield, 2019). Researchers

LOGISTICS AND SUPPLY CHAIN MANAGEMENT 3
describes that organization has to maintain and store the product according
to the temperature and season required to the goods. Ellram & Murfield also
revealed that there are two types of warehouses for storing the goods which
includes storeroom warehouses and distributing warehousing. In the
storeroom warehouses organization store the goods when there is
inadequate demand of the product whereas in the other warehouse
organization store the product when it have to distribute it in short period of
time.
The warehousing also have different roles and functions which includes that
it store the surplus goods, in this organization store up the goods which are
surplus that is which is not in demand by the consumers in particular period
of time (Jonsson & Mattsson, 2019). The warehousing also have several other
functions that is it include support the organization to stable the price of
goods by storing and preventing the products in the warehouses. Through
this organization can also earn appropriate profits and revenue in exchange
of the amount of time and cost spend by the organization in particular time
period. Therefore, warehousing can prevent the organization from the
fluctuations of the prices and also provide the capability to the organization
for bearing the risk and threats occurred in the organization.
Procter & Gamble Company (P&G) company was founded in the year 1837, it
offer consumer goods products to the customers such as beauty care
products, personal healthcare products. The estimation describes that the
company offer quality products to the customers and gain opportunities by
adopting the needs and requirements of the consumers (Yun et al., 2019). The
company use Latitude warehousing management system to keep all the
online information regarding the inventories so that proper information about
the inventory is achieved. This decrease the wastage in the organization can
help the organization to take competitive advantage.