Managing Distribution Networks
A distribution channel can be defined as, “an organized network (system) of agencies and institutions which, in combination, perform all the functions required to link producers with end customers to accomplish the marketing task” (American Marketing Association, 2013). The definition takes into account numerous contributors to the overall success of moving products into customers hands. Distribution channels are an important component of a successful business and marketing campaigns. Where demand is created the product must eventually be delivered. Even online businesses are not immune to taking the order and then delivering the products to the purchaser. For small batch production the use of existing distribution channels may be best (i.e. Fed Ex or UPS) but when large quantities of products are sold a much larger systems may need to be developed (i.e. Wal-Mart’s Commercial Truck Fleet). Each distribution system should be evaluated for its ability to provide timely del