Approaches to physical distribution costs and efficiency measurements and implications for economic development objectives

The measurement of cost and efficiency in physical distribution has been a subject of serious debate in marketing literature, particularly the concern for high costs and the need for improvements on the methods and processes of operations. What to be measured and how these are measured remain difficult in physical distribution tasks or functions. A survey design was used, and the population of study was some selected manufacturing firms in south east Nigeria, that are directly involved with finished goods distribution. Data collection was by questionnaire and interview. The data presentation was by simple percentages. The findings were that costs and efficiency in physical distribution were never really measured, appropriated as percentages of stock value and also by estimation. Physical distribution costs is a priority that must be fully established, the methods used properly documented and measures taken to control the costs.