ABSTRACT
Manufacturers use channels of different designs and configurations in order to reach different
markets. The most simple and straightforward channel is a direct channel whereby customers
buy products directly from the manufacturer or producer. However, this arrangement places
limitations on the scope and breadth of each producer. In order to reach each customer and
complete a buy/sell transaction, the manufacturer must replicate all the necessary business
processes and procedures with each customer. These processes are referred to as exchanges
(see Figure 5.1).
