Multi-channel distribution

MODELING CONFLICT AND COORDINATION IN MULTI-CHANNEL DISTRIBUTION SYSTEMS ... 

To effectively assess the costs and benefits of multi-channel distribution, manufacturers and intermediaries alike must understand the cross-channel tensions that can arise. The desire to use multiple channel types may ultimately compel a manufacturer to redefine its relationship with its intermediaries, with careful attention to the division of labor and any associated financial terms. Indeed, the management of channel conflict is a key B2B concern that will profoundly influence supply chain success in the age of eBusiness. 

The title of this chapter declares our interest in multi-channel distribution, but we must still clarify what we mean by multi-channel. Following the Ian-... 

The intent of this chapter is to review quantitative approaches to modeling conflict in multi-channel distribution systems (as described previously) and policies that may coordinate the actions taken by channel partners, thereby improving system performance. To this end, attention will be focused on research that meets the following criteria ... 

Figure 13.2. Multi-channel distribution system with independent retailer(s)...

Much has been written about the diversity in possible channel types (cf. Stem et al. 1996), with the distinctive attributes of online channels receiving special attention in the last few years (e.g., Alba et al. 1997, Peterson et al. 1997, Kenney 1999). These bodies of work provide much more detail than we can or should replicate here. Instead, we will briefly mention a few of the more salient issues, and comment on the implications of incorporating these into analytical models of multi-channel distribution systems. 

Existing literature on modeling coordination and conflict in multi-channel distribution systems has just begun to address some key issues, but opportunities for further research abound. Especially timely questions surround the use of nontraditional ways of selling and creative divisions of labor that have been enabled by information technologies. We hope that our review will provide a starting point for researchers who wish to contribute to this body of literature. 

In another chapter of this book, Tsay and Agrawal discuss in detail much of the research that addresses channel conflict in multi-channel distribution systems. The pricing conclusions of this stream of research will be summarized here the reader is encouraged to consult chapter 13 for a more detailed coverage of this subject. 

Modeling Conflict and Coordination in Multi-channel Distribution Systems A Review... 

As well as these demographic and Income distribution changes, other trends are reshaping the supply chain landscape. One trend In particular Is the emergence of new routes to market and the adoption by many companies of what has come to be termed multi-channel distribution. 

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