Physical distribution is concerned with making the goods and services available at the right place, so that people can purchase the same. There are two important decisions related to physical distribution. They are:
(i) Physical movement of goods.
(ii) Channels of Distribution.
Channels of distribution are set of individuals and firms that take title or assist in transferring title, to particular goods and services as it moves from producers to consumers.
It refers to a team of merchants, agents and business institutions that combine physical movement and title movement of products. A large number of middlemen not only result in economy of effort, but also^helps to cover a large geographical area and bring efficiency in distribution including transportation, storage and negotiation.