Which among the following is not a component of Physical Distribution?

Answer & explanation

Correct answer: option 2

The correct answer is Option (2) → Lobbying

Option (1) Order Processing — A component of physical distribution (Incorrect). Orders flow from customers to the maker. Handling them quickly and correctly is the first step in delivering goods.
Option (2) Lobbying — Not a component of physical distribution (Correct). Lobbying is a function of public relations. The firm deals with government officials and bodies to promote or change laws that affect it. It has nothing to do with moving goods.
Option (3) Inventory Control — A component of physical distribution (Incorrect). The firm decides how much stock to keep, so that it can meet orders without holding too much.
Option (4) Warehousing — A component of physical distribution (Incorrect). Goods are stored until they are needed, close to where the buyers are.

NCERT (2026-27 Edition): “Physical Distribution … Physical distribution covers all the activities required to physically move goods from manufacturers to the customers. Important activities involved in the physical distribution include transportation, warehousing, material handling, and inventory control. These activities constitute major components of physical distribution.”

“Components of Physical Distribution The main components of physical distribution are explained as follows:
1. Order Processing: In a typical buyer-seller relationship, order placement is the first step. Products flow from manufacturers to customers via channel members while orders flow in the reverse direction, from customers to the manufacturers. A good physical distribution system should provide for an accurate and speedy processing of orders, in the absence of which, goods would reach the customers late or in wrong quantity or specifications. …”

“Role of Public Relations … 4. Lobbying: The organisation has to deal with government officials and different ministers in charge of corporate affairs, industry, finance with respect to policies relating to business and the economy. The government also seeks to maintain a healthy relationship with associations of commerce and industry and solicits the opinion of major stakeholders while formulating industrial, telecom, taxation policies, etc. The public relations department then has to be really proactive in promoting or decoding regulations that affect them.”