Channel Optimization - Essay Example

There are four tips for optimizing distribution channels; involvement of high level management, asking the right questions, performing an inventory optimization study and making sure there is adequate labor (Kotler & Lee, 2007).Involvement of high level management Most organizations, do not involve the shareholders and other directors in the policy making process. They are only involvement in the final output. For effective optimization of distribution channels, all the key stake holders should be involved from the time the company is drafting its distribution strategy (Kotler & Lee, 2007).

Asking the right questions A good distribution channel, should look at all the key sections of an organization that need to be looked at and questioned. For example, if the goods delivery time is delayed, what will impact will the effect have on the overall sales revenue? This type of questions need to be asked and answered by an organization in order to optimize of distribution channels (Kotler & Lee, 2007).Preforming an inventory optimization channel One of the areas, which organizations give little attention is the inventory.

The way a company manages its inventory, becomes more and more important. A company needs to know where and how it’s going to stock all the products (Kotler & Lee, 2007).Ensuring there is enough labor Areas where an organization has many customers, the company should ensure that it has adequate number of employees who will ensure that all the customers’ expectations are met (Kotler & Lee, 2007).