Channels of distribution will be the most effective element when discussing order fulfillment. The primary function of the element would be to learn appropriate ways by which goods are created available to the marketplace. This is a managerial function and therefore proper decisions should be used this matter before commercial production begins.
Once the product is finally ready for the marketplace, it must be determined what methods and routes will undoubtedly be used to create the merchandise to the marketplace i.e., to ultimate consumers and industrial users. This technique involves establishing distribution and providing for physical handling and distribution. Distribution can be involved with various activities, like the movement and storage of goods, the legal, promotional and financial activities mixed up in transfer of ownership from the producer to the buyer.
A channel of distribution for something may be the route taken by the products because they move from the business to an individual. In accordance with American marketing association, "A channel of distribution, may be the structure of intra-company organization units and extra-company agents and dealers wholesale and retail, by which a commodity, product or order is marketed".
It could be noted that each marketing channel contains a number of of the transfer points at all of which there's either an institution or perhaps a final buyer of the merchandise. From the view point of the producer, this type of network of institutions useful for reaching market is actually a marketing channel. A channel always includes both producer and the ultimate customer of the merchandise, along with all agents and middlemen mixed up in transfer of title. However, the channel will not include firms such as for example bank along with other institutions, which render a marketing service, but play no major role in purchase and sales. .