Which term refers to the transportation of goods from supplier to buyer?

• A. Physical distribution
• B. Physical supply
• C. Logistics
• D. Transportation management

Answer: (B)

Think of inbound versus outbound flows. Moving goods from a supplier toward the buyer is an inbound flow to the recipient, which CPIM labels as physical supply. This term specifically covers the inbound movement of materials from suppliers to production facilities or warehouses and the transportation involved.

Physical distribution, in contrast, covers the outbound side—getting finished goods from the plant to the customer. Logistics is the broad umbrella that includes both inbound and outbound flows and the management of those flows. Transportation management focuses on planning and executing transport activities, but the broader inbound flow from supplier to buyer is best described as physical supply.