Physical distribution refers to the comprehensive range of logistics activities involved in the movement of goods from the production line to the final user. It encompasses various essential processes, such as traffic management, packaging, materials handling, warehousing, order entry, customer service, and inventory control. These activities collectively ensure the smooth flow of products throughout the supply chain, from the initial production stages to the ultimate delivery to the end consumer. Physical distribution plays a crucial role in optimizing the efficiency of product distribution, minimizing costs, meeting customer demands, and maintaining high levels of customer satisfaction. It involves strategic planning, coordination, and execution to effectively manage the complex network of transportation, storage, and order fulfillment operations.

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