Physical distribution organisations may be defined as organisational units whose duty is to administer economic activities that impact upon the flow of finished goods between points of production and consumption. Physical distribution components occupy a unique role in the organisation. Their mission has been defined as “getting the right assortment of materials to the right location in an efficient manner timely to marketing and manufacturing requirements”. To accomplish this mission there must be continual interaction between suppliers of materials and receivers of materials. Material suppliers can be thought of as the rest of the organisation of which the physical distribution component is a part, primarily the production or manufacturing component. Receivers of materials are the organisation's customers or distribution points. The physical distribution organisation, by virtue of the activities it performs, must deal with both the internal suppliers and the external receivers.
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