Physical function:

a) Storage:

– The need for storage to allow a smooth, and as far as possible, uninterrupted flow of product into the market.

–  Especially agriculture in Nepal, supply often exceeds demand in the immediate post-harvest period.

– The storage function is one of balancing supply and demand.

b) Transportation:

–  It requires consideration of alternative routes and types of transportation, with a view to achieving timeliness, maintaining produce quality and minimizing shipping costs.

– Effective transport management is critical to efficient marketing.

c) Processing:

– Most agricultural produce is not in a form suitable for direct delivery to the consumer, when it is first harvested.

– The form changing activity is one of that adds value to the product which has greater utility to the buyer.

– How the form of produce is to be changed and the method to be used in bringing about such changes are marketing decisions.