1. Supplying Distribution : from supply to stock
2. Sales Distribution : concerning with sales of products
3. Inhouse Distribution, Returning Distribution

The method to manage these physical distribution is called Logistics (= originally means the military supply). Logistics aims at rationalization of physical distribution.

Rationalization of Distribution means, elimination of surplus stocks, in the each step of the following flow: Manufacturer and Dealer --> Physical Distribution Center --> Retail Shop. At the same time, logistics establishes readiness for instant delivery of necessary products.

The adoption of on-line and network system of Information in recent years, connecting the retail shop from the maker, enables the both contrary demands without contradiction.

The following illustration shows the flow of informations and products.

* Coding System of the Standard Symbology for Physical Distribution

• Standard Version
  

  X - FF - MMMMM - IIIII - C/D

• Extended Version
  

  0XX - FF - MMMMM - IIIII - C/D

  * If the JAN code of content products is the short version, the code is as follows:
  

  X - 00000 - FF - MMMM - I - C/D
  0XX - 00000 - FF - MMMM - I - C/D

  ** X = Identification Code for PD
  F = Flag
  M = Maker Code
  I = Item Code

• Add-on Version
  

  

  Another type of code system (see below) is used for packages, of which the weight and the price differs in each packages, like meat, ham, etc. (It is not used in Japan)

  6-digit symbol affixed at the bottom of the symbol;
  (If decimal point is needed, it must be inserted between 3rd and 4th figures.)

  WWW.WW - C/D

* Barcodes used for the Standard Symbology for Physical Distribution

The code of ITF must have even length of figures. So the Extended Version of 15-digit (odd length) must affix a dummy zero at the beginning and fit its length to 16 (even) digits.

• In case of Standard Version
  

  0	In case of packings of two or more sorts of products. * in this case, however, item code must be newly set up.
  1 -- 7	Indicates difference of quantities among the same products. * if there is only one packing form, or of the largest quantities of shipment, set it to 1.
  8	Prohibited (reserved)
  9	Ordinally prohibited (indicates that the add-on version is attached)

• In case of Extended Version
  

  00	In case of packings of two or more sorts of products. * in this case, item code must be newly set up.
  01 -- 08	Prohibited (because it cannot be distinguished from the standard version.)
  X0 -- X8	Indicates difference of quantities among the same products. * if there is only one packing form, or of the largest quantities of shipment, set it to 10. * however, X is set to 1 -- 7
  8X, 9X	Prohibited (reserved)
  X9	Prohibited ordinally (indicates that the add-on version is attached)

* A reference to assign the Identification Code for Physical Distribution

• Serial Number System
  10 as standard package, and number different quantities or figure of packages serially.

• Block System
  1. By product distinction
     

     10 -- 38	ordinal products
     40 -- 48	seasonal products
     50 -- 58	for business use
     60 -- 78	prepared

  2. Inner box / Outer box
     

     10	inner box
     50	outer box

     Head each of them, and number serially.

• Distinguish the total quantities in the box
  
  1. In case apparent distinction between inner/outer box is needed
     

     1st figure	set key to the total quantity of content. for example, 1 as 20 pieces within, 2 as 50.
     2nd figure	0 as separated contents, 3 as three inner box.

  2. Distinctives for campaign products, seasonals, with free gifts, etc.
     

     1st figure	set key to the total quantity of content. for example, 1 as 20 pieces within, 2 as 50.
     2nd figure	0 as ordinal products, 1 as campaign products, 2 as seasonals and 3 as with free gifts, etc.

• Distinguish the quantities of inner boxes
  Indicates how many items in the inner box, if the quantities of contents in the inner box are fixed. For example, if there're 30 inner boxes of 20-item included, get the sum of them: 20 + 30 = 50.

• Display quantities directly
  The system that displays the quantities of content, such as, 12 pieces = 12, 30 pieces = 30, and so on. However, this system cannot display 00 -- 09, so the exceptional rule is needed, like 3 pieces = 73, etc.