What is the relation between Channel Management And Physical Distribution?

Channel Management includes more or less the entire life cycle of the movement of product from the Principal to the end user via distributors & Retailers. Channel management includes the Product choice, pricing, margins, negotiations, decision on POS material and it's distribution. 

Physical distribution is more of a logistical chore, where in based on how the channel is decided to be managed, physical products are moved from Principal's warehouse to the retailer and finally to the end user.