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Supply Chain with Channels

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Supply Chain with Channels
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Topic: ”Supply Chain Relationship with Distribution Channel and Alliances” I- Objectives:

a. To know the meaning of (i) Distribution Channel and (ii) Alliances; b. To understand the generic Channel distribution structure and Channel alignment of one manufacturer; c. To identify channel distribution functions; d. To learn about the rationale of a Supply chain relationships with distribution channels and alliances; e. To identify some distribution channel and alliances conflicts; and f. To understand about the Logistical Service Alliances.

II- Introduction

Among the least understood areas of business is the complex grouping of institutions referred to as the distribution or marketing channel. Most companies today outsource the distribution effort as it possible to find competent distribution channels to perform the functions. The channel is the arena within which a free market system performs ownership exchange of products and services. It is the battlefield of business where a firm’s ultimate success or failure is determined. The diversity and complexity of channel arrangements makes it difficult to describe and generalize the challenges managers confront when developing a comprehensive channel strategy.

Frequently there may be a chain of intermediaries, each passing the product down the chain to the next organisation, before it finally reaches the consumer or end-user. There have also been some innovations in the distribution of services. The channel decision is very important. In theory at least, there is a form of trade-off. Most companies today outsource the distribution effort as it is possible to find competent distribution channels to perform the functions.

Business managers need to understand channel economics and relationship management in order to plan and implement satisfactory business arrangements. In actual practice considerable planning and negotiation precede

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