Abstract
The last decades of the twentieth century witnessed a considerable expansion of globalization that is dramatically changing the main logistics pattern and the physical distribution strategies across the supply chain from raw material sourcing to end product delivery. The longer geographical distances from the point of origin and the point of consumption not only have increased transportation costs, but also complicated decisions due to inventory cost tradeoff related to increased leadtime in the supplychain. The present paper analyses physical distribution strategies in a global supply network, focusing on the sourcing strategies of European companies. A framework for the selection of transportation alternatives is proposed with respect to some key factors to be taken into account for designing a global physical distribution network. Impacts of different buying policies on selecting best logistics and transportation alternatives are also discussed.