Learning Objectives Chapter 15

6.) Explain how marketers evaluate and control the physical distribution process.

Since a major channel objective is to minimize total distribution costs for a particular level of market coverage, physical distribution costs must be analyzed.

Value-driven physical distribution is finding ways to increase the speed and reliability of distribution while holding costs down. Many organizations rely upon expert contract logistic companies like FedEx or UPS. Cross-functional decision making can help lead the organization to the best trade-offs between cost and customer service. This approach ensures that the physical distribution system supports the overall strategy of the organization.