Final answer:
The physical distribution concept is about efficiently executing logistical activities including transportation, storage, and handling of products. Natural resource management impacts these logistics by affecting where goods are produced and how they are moved. A balance between cost-efficiency and customer satisfaction is essential.
Step-by-step explanation:
The physical distribution concept contends that logistical activities such as transportation, storage, and handling of products are integral parts of the distribution process and should be carried out in a manner that is efficient, cost-effective, and supportive of an organization's overall customer service and marketing objectives. These logistical components are vital in ensuring that products are delivered to the right place at the right time, which is essential in today's global marketplace.
For instance, the distribution and management of natural resources significantly influence logistical strategies. When analyzing the movement of products, money, and people, it becomes evident that natural resource availability impacts where products are made and how they are moved. Companies use this understanding to optimize their supply chains, reduce costs, and improve service to customers.
Factors Influencing Physical Distribution
- The availability and cost of natural resources determine the location of production and creation of goods.
- Advances in transportation lead to more efficient movement of products.
- Strategic storage locations minimize expenses and enhance delivery times.