Functions of Distribution Channel
The main functions of distribution channels can be divided into the following categories:
1. Logistic Functions:
A distribution channel’s logistic function is concerned with the physical movement and storage of goods, which ensures efficient transportation between points of production and consumption. It involves a wide range of activities, such as:
• Transportation:
The process of selecting the most appropriate mode of transportation (e.g., trucks, ships, planes) to move products from one location to another. It involves managing logistics networks and coordinating the movement of products.
• Warehousing:
The process of storing and managing inventory in warehouses and distribution centers. This includes receiving, inspecting, storing, and retrieving items.
• Inventory management:
Managing inventory involves forecasting demand, monitoring stock levels, and implementing efficient replenishment processes in order to meet customer demand while minimizing storage costs.
• Order fulfillment:
Processing and fulfilling customer orders accurately and efficiently, including order picking, packing, labeling, and shipping.