Physical Distribution Case Study

The organisation in the given case study is struggling to sustain its profits while exceeding the average of its industry so as to maintain its competitive advantage. There are two basic types of competitive advantage for any organisation and they are cost advantage and differentiation advantage. A competitive advantage for the organisation in the case study exists in the form of its ability to deliver the similar benefits as competitors at a lower cost, which is providing the organisation cost advantage. Moreover, the organisation is also providing its consumers with more variations in its products as compared to its competing products, which is providing the differentiation advantage to the organisation under consideration (Brumfitt, 2001).

The physical distribution is assumed to consider sales distribution channels such as retail or wholesale while considering the decisions related to the inventory, consumer service, packaging, transportation, order processing, and logistics. The significance of the physical distribution for the organisation is associated mainly with the nature of the product along with the consumer satisfaction (Brumfitt, 2001). It is further managed with the use of systems approach while considering the interrelated functions to provide effective movement of the products. Moreover, the decisions in this aspect are taken carefully as every action or function has an impact on others. This approach can enable the organisation under consideration to gain benefit in controlling costs while fulfilling the demands of consumer services (Basu, 2001). The function of consumer service is considered as a designed standard for the satisfaction of consumers in such a way that the business intends to deliver to its consumers. Moreover, the order processing is designed for taking the consumer orders while executing the specific aspects of the consumers’ demand related to the products (Ellis,

The aspects of total quality management reflect that members of the organisation participate in the improvement in processes, products, services, and culture to work and perform their responsibilities. The organisation under consideration is required to consider the consumers while involving the employees in consistent improvement. For this purpose, it uses the data, strategy, and communication methods for integrating the quality into the culture of organisation along with its activities (Brumfitt, 2001). The consumers determine the level of quality regardless of the training to employees, purchasing new tools for measuring, and integrating the quality within the design process. The complete involvement of its employees can be obtained when empowerment has occurred along with the providence of effective environment by the management. The high performance work systems integrate the consistent improvement efforts with the business operations. Moreover, the organisation should consider the process thinking, which is a series of steps taking inputs from suppliers while transforming them into the results being delivered to the consumers (Basu, 2001). Another aspect of the quality management to be considered by the organisation under consideration is the strategic and systematic approach for achieving the vision, mission, and goals of the organisation. This process is