Indirect/Distributor Channel
The Indirect/Distributor Channel is a type of sales and distribution channel that involves one or more intermediaries between the producer and the ultimate consumer.
Your company sells and ships to the distributor. The distributor sells and ships to the end user. This may occur in multiple stages. Ultimately, your product may pass through the Indirect/Distributor Channel and arrive at a retail outlet. Order information in this channel may be transmitted by electronic means. These means may include EDI, brokered systems, or linked electronic systems.
This type of channel is often used in complex supply chains, where there are multiple stages of distribution. In the Indirect/Distributor Channel, the order information is transmitted electronically, typically through EDI or other electronic means. This allows for streamlined communication and more efficient order processing. The Indirect/Distributor Channel can be beneficial for both producers and consumers, as it allows for better coordination and fewer delays.
In general, the Indirect/Distributor Channel is one of the most complex and intricate channels in the logistics system. It requires close coordination between all involved parties in order to run smoothly. Thanks to advances in technology, however, this type of channel is becoming increasingly more efficient and streamlined.
Related Links
Direct vs. Indirect Distribution Channel: What’s the Difference?
Direct Vs. Indirect Distribution Channels – Sensiba San Filippo
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