Performance Evaluation and Logistics

Abstract

This chapter will deal with varied areas and their interactions with the distribution system and the marketing channels of the company. The first area discussed is the evaluation of the channel members. This is important as proper evaluation of the performances and other characteristics of the channel members is connected with their motivation as well as the overall performance of the company itself. The distribution system or the marketing channels of service-oriented companies are also discussed as the economy, especially of developed countries, are fast moving towards the service sector. In the service sector the basic principles remain the same – however, there are some major differences with the marketing channels of products. The distribution channels are so complex for large organizations that a very robust information system has to be in place in order to maintain the operations of the system and also to have proper control and evaluations of the channel members. The backbone of the distribution systems of large organizations are the logistics and the supply chain management of the company. Proper utilization of the tools and techniques of modern logistics and supply chain management is a prerequisite for efficient and effective functioning of the entire distribution system. Again, in this open world, companies are increasingly looking at the entire world as their prospective customers, and hence, a proper understanding of international channel management is necessary for all companies.