Physical distribution deals with the movement of goods through an organization’s distribution and fulfillment network to the consumer. It often makes use of several different fulfillment centers that reside within a distribution network.
The Importance of Physical Distribution to eCommerce
eCommerce takes place mostly online. However, the distribution of the goods takes place offline. For physical distribution to be effective, you need fast shipping, and low logistics cost. The following are some of the main ways in which physical distribution assists with the efficiency of a supply chain.
Get Fast Shipping
Getting goods to customers fast will ensure that your customers speak highly of you and come back to buy more. To get faster shipping times, you need to be strategic about how and where you store your inventory. Having a centralized location is essential to ensuring that your goods are available for quick distribution.
Reduce Your Cost
When your physical distribution costs are reduced, you can pass on the savings to your customers.
The four most important functions of physical distribution are:
- Automated order processing
- Warehouse management
- Inventory control
- Automated shipping
Once you get all these working seamlessly, you will be able to increase customer satisfaction.
Improve Customer Satisfaction
Customer satisfaction is the end goal of good distribution. By making sure that your customers are satisfied you are securing repeated business and good word-of-mouth advertising. All of which are essential to the success of your business.
If you would like help with automated shipping, do not hesitate to contact us at ShipJoy.