| A | B |
|---|
| Physical distribution | The activities in the distribution process that organizes and moves the products through the channels. This movement (also called logistics) includes ordering, transporting, storing, handling, and inventory control. |
| Transportation | The physical movement of the product from one place to another. There are five major methods. |
| Trucking or motor carriers | . For example, tractor-trailer trucks deliver most of Wal-Mart’s products. |
| Railroads | Move heavy and bulky freight. For example, coal, steel, lumber, grain, and equipment. |
| Marine shipping | Transporting goods within the US and around the world. For example, barges transport steel, iron ore, and grain along the Mississippi River. |
| Pipelines | Move oil and natural gas. |
| Air cargo services | Transportation for high value, low-weight, and time-critical products. |
| 3. Transportation service companies | Additional means of moving small to medium-sized packages. For example, US Postal service, express delivery services, bus package carriers, and freight forwarders (private companies that combine shipments from several businesses to help reduce costs to those businesses) would deliver these smaller parcels. |
| Storage | The holding of products until they are sold. |
| Private Warehouse | For example, Carol’s Linens has its own building to store extra inventory until needed. |
| Public Warehouse | Storage and handling facility that may be provided for any business willing to pay for the space. |
| Distribution center | A storage facility used to centralize and speed up the delivery of goods and reduce the cost of storage. |
| Bonded warehouse | Private or public warehouse used to store products until federal taxes have been paid on the product(s). |
| Blind check method | Writing a detailed list of the merchandise and its quantity. This list is then compared to the actual invoice. This method is time consuming but is considered the most accurate. |
| Direct check method | The merchandise is verified against the invoice or purchase order. |
| Spot check method | Merchandise is randomly checked for quality and quantity. |
| Quality check method | Merchandise is inspected for workmanship and making sure there is no damage to merchandise. |
| UPC | The most common method of marking, scanned at check out. |
| Inventory | The storing of merchandise before it is sold. There are two methods. |
| Perpetual Inventory | Tracks inventory on a continuous basis. A company can track and know the value and quantity of products on hand at any time. |
| Physical Inventory | Stock is physically counted periodically and verified for accuracy. |
