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Physical distribution refers to the process of transporting finished goods from a manufacturer to the end customer, encompassing logistics activities such as warehousing, inventory management, and order fulfillment. In contrast, materials management focuses on the planning and control of raw materials and components needed for production, ensuring that materials are available at the right time and place to support manufacturing processes. While physical distribution emphasizes the flow of products to customers, materials management is concerned with the procurement, storage, and handling of materials within the production cycle. Both are essential for efficient supply chain management, but they address different aspects of the overall process.

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