An Appraisal of the Integrated Physical Distribution Management Concept

Abstract

The notion that a firm's total costs could be reduced, customer service improved, and interdepartmental conflicts substantially reduced if distribution activities were more closely co‐ordinated and centrally programmed, has emerged as an important concept in physical distribution and marketing. This concept has become known as “integrated physical distribution management” and has attracted the interest of practitioners and academicians alike. The National Council of Physical Distribution, an association of more than 2,000 distribution executives and educators, defines physical distribution management as: “Physical distribution management is the term describing the integration of two or more activities for the purpose of planning, implementing and controlling the efficient flow of raw materials, in‐process inventory and finished goods from point of origin to point of consumption. These activities may include, but are not limited to, customer service, demand forecasting, distribution communications, inventory control, material handling, order processing, parts and service support, plant and warehouse site selection, procurement, packaging, return goods handling, salvage and scrap disposal, traffic and transportation, and warehousing and storage.” NCPDM Revised Version—1976 This concept of tying together a number of distribution activities and viewing the result as a system represents an “integration” of the traditionally fragmented physical distribution management function.