How does physical distribution management typically benefit a company?

Physical distribution management is a crucial aspect of logistics that focuses on the efficient movement of goods from the point of origin to the customer. When implemented effectively, it enhances customer satisfaction and reduces costs, making this the correct answer.

By optimizing transportation routes, selecting appropriate distribution centers, and managing inventory levels effectively, companies can ensure that products are delivered to customers in a timely manner. This reliability in delivery can lead to higher levels of customer satisfaction, as customers appreciate receiving their orders quickly and accurately.

Moreover, physical distribution management can lead to cost reductions through improved efficiencies. This includes minimizing transportation costs by consolidating shipments, reducing handling costs by selecting favorable shipping methods, and minimizing inventory holding costs by optimizing stock levels. These savings can significantly improve a company's overall profitability while delivering value to customers.

The other options, while related to aspects of logistics and supply chain management, do not encapsulate the primary benefits of physical distribution management as effectively as customer satisfaction and cost reduction do. Increasing inventory levels could lead to higher holding costs and potential waste, accelerating product innovation is not directly tied to distribution, and simplifying the supply chain may not necessarily lead to customer satisfaction without addressing the effective distribution of products.