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Distribution Channels in the Company

Updated August 11, 2022

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Distribution Channels in the Company essay

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The distribution channels operated by the company can be classified into upstream distribution channel and downstream distribution channel.

The upstream channels will be designed in a way to reduce inventory and warehousing costs whereas the downstream channels will be managed with a direct selling model to customers based on real time demand so as to not have excess or unutilized stock lying unused. This is particularly necessary as technological changes may make some of the electronic parts outdated or redundant.

The upstream distribution channel comprises of all vendors like helmet raw materials, Bluetooth and wireless manufacturing OEMs and visor manufacturers. These will operate on Pull strategy where the consumption by customer will drive the supply. The company will follow a Kanban kind of model where al consumptions by customers are tracked real time and conveyed back to its suppliers.

The suppliers will then aggregate the demand into lot sizes suitable for them, taking into account the transportation costs. The company to customer is direct selling with a zero channel distribution and will rely entirely on internet based websites or mobile based apps to get orders from customers. The maintenance of the website and apps will be from third party providers as the company would like to focus on its core business. The last mile connectivity with customer will be delivered through courier services. The courier services will in turn be using multi-mode transport.

It is necessary to integrate the tracking and delivery mechanisms with courier services, to give a seamless experience to the end customer for reliable delivery.

Distribution Channels in the Company essay

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