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Channel Design: Prof Sharmila.B.Yewale Bba/Bba-Ib Indira College of Commerce and Science
Channel Design: Prof Sharmila.B.Yewale Bba/Bba-Ib Indira College of Commerce and Science
Prof Sharmila.B.Yewale
BBA/BBA-IB
Indira College of Commerce and
Science
What is Channel Design?
Defining
Ideal
the
channel
Channel
structure
Objectives
Evaluation
Channel
of major
alternatives
alternatives
Process of Channel Design
The process of developing and effective channel design can be
divided into two phases
a) A broad structure of supply chain set
• This step includes the decisions to be taken about whether
the product can be sold or directly or through some
intermediary agent.
b)The second phase
• Is broken into smaller activities to specify the
location,capability of the channel and capacity of demand
allocation.
Factors influencing Channel Design
Managers have many factors to consider when choosing a
product distribution channel.
Cannel choice may include questions like,
1. To whom shall we sell this merchandise immediately?
2. Who are our ultimate users or buyers?
3. Are the customers needs met?
4. What are the costs of meeting needs?
5. Will the customer pick up the product personally or will the
product be delivered to customer location?
Other factors for concerning channel as a network are:-
❖Response time
❖Product
❖Product availability
❖Adoptability, Flexibility to adopt
❖Return ability
❖Order Visibility
❖Time to Market
There are six important distribution
network systems or channel design