How does the channel provides distribution efficiency ?
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Increasing Distribution Channel Efficiency
A company can increase the efficiency of a distribution channel by maximizing the benefit of channel intermediaries. ... Through dedicated supply chain managers, a company can reduce costs related to inventory, improve delivery and enhance product availability.
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The channel can provide efficiency in their distribution by carefully selecting the right intermediaries, focusing on the process of supply chain management and by integrating the activities of the different distribution channels and making it into a strong channel base.
Explanation:
- The responsibility of the distribution channels is to create a smooth flow of goods and services from the end of the manufacturers to the end-users.
- There are individual entities that combine together for reaching the products for selling to the customers.
- The business organisation can maximize the benefit of the distribution channels to increase their level of efficiency.
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