Each member in a channel is an organisation itself with its own marketing objectives. Each of these firms strive to achieve its objectives like increase in revenues, be a market leader, etc. The channel members should be viewed as customers by the manufacturer. This way the manufacturer understands the needs and challenges faced by the intermediaries and accordingly take steps that in the best interest of the manufacturer as well as the intermediaries.

For smooth functioning of operations, clear policies and procedures should be agreed upon and formally signed. If the policies and procedures are not clearly shared and formally agreed to, the possibility of conflicts is high among channel members.

Motivating channel members –An organisation should sell the product to intermediaries as a customer considering their needs and wants. This helps a manufacturer achieve its objectives. It should cooperate and help the intermediaries in every possible way with training programs, market surveys, etc. to improve their performance.

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Supply chain involves all the organisations involved in making a product available to the customer. It includes raw material providers, transporters (logistics), manufacturers, and intermediaries. The functions that provide support services like consultants, lawyers, quality control also form part of the supply chain.

Sourcing and procurement are that functions of the supply chain management which are concerned with the supply of materials to the manufacturers. Under sourcing, an organisation evaluates and hires individual businesses for the meeting its supply needs. It is part of the supply chain management that deals with the selection of suppliers and management. The organisations do the necessary evaluation of the supplier basis requirements (quality, price, time of delivery, period of supply, etc.) and sign written contracts for the delivery of goods.

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