![\"Components](\"http:\/\/www.vskills.in\/lms\/wp-content\/uploads\/2016\/06\/Components-of-Physical-Distribution.jpg\")
<\/figure><\/div>\n\n\n\nOrder processing<\/strong>: The distribution process is activated by a customer order. The order cycle includes the time spent in processing the order as well as the time taken by the physical motion and therefore depends on the speed and efficiency of (hest.: operations, Electronic systems are now available to reduce the time needed for the flow of information and communications.<\/p>\n\n\n\n Order processing is the receipt and transmission of sales order information.<\/p>\n\n\n\n Efficient order processing facilitates product flow.<\/p>\n\n\n\n There are three main tasks in order processing.<\/p>\n\n\n\n Methods of order processing<\/p>\n\n\n\n Since the costs of physical distribution can amount to more than a quarter of sales price at manufacturing level and the necessary assets can amount to as much as a third of the corporate assets, it is important for management to keep these costs down. It is possible to keep visible costs, such as ware- housing, inventory and transport, down when the logistics functions are integrated. The invisible costs are due to customer dissatisfaction caused by late deliveries, lost sales\/orders, etc. Control of these costs, both visible and hidden, is very difficult owing to the effect of any changes on customer service levels. Improvement of the latter can increase costs and a decrease in costs may mean a drop in the quality of the service. Physical distribution management provides guidelines for keeping a balance between cost and service levels<\/p>\n\n\n\n Transport is an important part of logistics since inadequate transport provision can increase inventory costs prohibitively, as well as the investment in inventory; it can also cause customer dissatisfaction and increase the invisible costs dramatically. Therefore the selection of the right mode of transport, which is efficient and dependable, is essential for the achievement of distribution objectives. The five modes are: rail, road, sea\/ waterways, air and pipeline, plus combinations of some or all of these. The possibilities must be considered for cost, reliability and possibility of risk\/damage.<\/p>\n","protected":false},"excerpt":{"rendered":" Physical distribution refers to the activities\u2014orders processing, inventory management, materials handling, warehousing, and transportation\u2014used to move products from producers to consumers and other end users. Order processing: The distribution process is activated by a customer order. The order cycle includes the time spent in processing the order as well as the time taken by the…<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-101360","page","type-page","status-publish","hentry"],"acf":[],"yoast_head":"\n