In an administered channel system, what are the types of agreements that channel members might make?

Multiple select question.

To work together on promotions

To vertically integrate

To share inventory information

To keep ordering separate

1 answer

In an administered channel system, channel members might make the following types of agreements:

  • To work together on promotions: Collaborating on marketing and promotional efforts can enhance visibility and sales for all members in the channel.

  • To share inventory information: Sharing inventory data can lead to more efficient supply chain management and better coordination between channel members.

  • To keep ordering separate: This can be an arrangement where channel members maintain their individual ordering processes for better operational autonomy, although it might not be as common in a cooperative administered channel.

To vertically integrate typically refers to a strategic decision to consolidate supply chain operations under one entity rather than an agreement among channel members in an administered system. Therefore, it may not be an applicable option in this context.