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Channel Partnerships Streamline Distribution
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By Robert D. Buzzell and Gwen Ortmeyer
Spring 1995
Reprint 3637
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Volume 36, Number 3, pages 85-96, 12 pages
Primary Topic: Marketing
SummaryFormerly adversarial relationships between retailers and their suppliers are giving way to cooperative partnerships in which both try to improve merchandise and information flow in the distribution channel system. By cooperating, retailers and suppliers can speed up the replenishment of inventories, improve customer service, reduce the need for markdowns, and cut the cost of bringing goods to the customer. The authors outline the key features of channel partnerships and discuss the reasons for their rapid formation during the 1990s. They describe the changes needed in traditional merchandising and distribution systems to gain the benefits of a partnership and the requirements for a successful channel partnership. |
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