PROCESS

 When it comes to design of channels, there are 4 models; distributor, logistics, direct sales, and 3PL. This is a management decision on which model could be chosen. Generally, selection criteria was depending on product, market, management goal. In the beginning period of business, the distributor model can be preferred to access the market. And then, sales went up and the company needed to integrate the business process. At the period, a logistics model can be applied.  In case of increasing sales volume through service level enhancement, direct sales may be picked up. In the last case, management asked to reduce channel expense, 3PL was one of the choices.