Function of the physical supply:

The second group of the marketing process is the physical supply. These are the functions that are related with creation of place and time utilities. Physical transfer of the goods from the manufacturer to consumer takes place by means of the following functions.

1.      Transportation: marketing system requires an economical and effective transportation system. A good system of transportation increases the value of the goods by the creation of place utility. The opening of the new markets has been possible by the quick development of the transportation and in the communication. It has resulted in the expansion of the markets, regular supply at lower price and improved services to the consumers.

2.     Storage and warehousing: when production is seasonal but the consumption is perennial or when production is continuous but consumption is seasonal storage becomes necessary. Storage becomes holding and preserving of the goods between time to time of their production and their time of their consumption. It facilitates a steady flow of the commodities in the market warehouse can be maintained at central from where the distribution can be made according to the needs of the consumers. Storage tends to adjust the supply to demand of the product and also holds the price line. Thus storage can be regarded as a function of equalization. It creates time and place utilities.