ABSTRACT
A distribution channel can be defined simply as a number of a group of organizations which are taking part in a process of flow of products or services from producers to customers. This chapter discusses the key elements of the successful distribution channels. Indicatively various resources, such as raw materials and structural sub-elements of the product may be considered as inflows, as are its spare parts, capital, information, know-how and know-why, etc. The building of channels is a relatively time-consuming process of a strategic nature. In order to maximize their benefit, companies aim to produce and sell great quantities of products. In the context of the recognition of the dynamic nature of functions as well as the system which must cohesively enclose an interdependent set of associates in order to produce, via their symbiotic relationship, a utility greater than the sum of their individual efforts, the use of the term 'flow' is considered justified.
