Chapter 2: The Channel Participants, from the 10 th objective of in the

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Facilitating Agencies in Marketing Channel
This are business firms that assist in the performance of distribution tasks
other than buying, selling, and transferring title. From the standpoint of the
channel manager, they may be viewed as subcontractors to whom various
distribution tasks can be “farmed out,” based on the principle of
specialization and division of labor. By properly allocating distribution tasks
to facilitating agencies, the channel manager will have an ancillary structure
(group of institutions that help the channel members) that is an efficient
mechanism for carrying out the firm’s distribution objectives. Here are some
of the more common types of facilitating agencies;
The first one Transportation agencies this help carrying goods from one
place to another. They take responsibility to carry goods from producers to
the consumers. In this way, they create place utility of products.
Transportation agencies include all firms offering transportation service
on a public basis, such as United Parcel Service (UPS) and Federal
Express. Because of great economies of scale and scope, these and other
common carriers are able to perform transportation services far more
efficiently and cost-effectively than manufacturers, wholesalers, or retailers.
Second is Storage agencies The consumers, at a time, do not consume
all the products produced by business firms. On the other hand, warehouse
is indispensable to keep necessary raw materials, semi-finished and even
finished products safe. So, storage agencies play an important role to
maintain balance between demands and supply, manage regular supply
and create time utility of the goods. Storage agencies consist mainly of
public warehouses that specialize in the storage of goods on a fee basis.
Many of these firms provide great flexibility in performing the storage tasks.
For example, in some instances the goods of a channel member
(producers/manufacturers, wholesalers, or retailers) are not physically
stored in the warehousing firm’s facilities, but rather in the channel
member’s own facilities. Under this so-called field warehousing
arrangement, the warehousing agency locks up the goods and issues a
receipt, which often serves as collateral on a loan taken by the channel
member.
Third Order processing agencies are firms that specialize in order
fulfillment tasks. They relieve manufacturers, wholesalers, or retailers from
some or all of the tasks of processing orders for shipment to customers. It
begins when a business receives an order, and ends when the order is
shipped. Several aspects of inventory management, including batch
picking, as well as shipping, packaging, and sorting inventory, fall under the
order fulfillment process. 
For example, Catalog Resources Inc., based in Dover, Delaware, handles
the order processing for the catalog sales of Laura Ashley, Caswell-
Massey, Winterthur, and Hallmark Cards, thus relieving these firms of the
“nuts and bolts” involved in processing customers’ orders themselves.
The fourth one is Advertising agencies this operated to help in the
promotion of business, make promotional plans, programs and campaigns
of the business firms and implement them. Advertising agencies offer the
channel member expertise in developing promotion strategy. This can
range from providing a small amount of assistance in writing an ad to
complete design and execution of the advertising campaign.
Fifth Financial agencies provide necessary capital to business firm.
Finance plays decisive role in both production and distribution of goods and
services. Financial agencies consist of firms such as banks, finance
companies, and factors that specialize in discounting accounts receivable.
Common to all of these firms is that they possess the financial resources
and expertise that the channel manager often lacks.
The sixth agency is Insurance companies provide important service to
business firms. They bear risk of any loss of goods from shop, from
warehouse or while transporting and ensure distribution of goods.
Insurance companies provide the channel manager with a means for
shifting some of the risks inherent in any business venture, such as fire and
theft losses, damage in transit of goods, and in some cases even inclement
weather.
lastly Marketing research firms have grown substantially in the past 20
years. Most large cities now have a number of marketing research firms
offering a wide range of skills. Market research firms collect information
from market and consumers about needs and wants, market and product
trend, demand situation, competitors' strengths and weakness,
effectiveness of distribution strategy, etc. analyze them and provide
important information to the business firms. The channel manager can call
on these firms to provide information when his or her own firm lacks the
necessary skills to obtain marketing information relevant to distribution.