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Specify Distribution Tasks

13 May, 2016 - 13:23

After the distribution objectives are set, it is appropriate to determine the specific distribution tasks (functions) to be performed in that channel system. The channel manager must be far more specific in describing the tasks, and must define how these tasks will change depending upon the situation. An ability to do this requires the channel manager to evaluate all phases of the distribution network. Tasks must be identified fully, and costs must be assigned to these tasks. For example, a manufacturer might delineate the following tasks as being necessary in order to profitably reach the target market:

  • provide delivery within 48 hours after order placement
  • offer adequate storage space
  • provide credit to other intermediaries
  • facilitate a product return network
  • provide readily available inventory (quantity and type)
  • provide for absorption of size and grade obsolescence