Question

Technological changes, though continual, do not occur evenly or predictably over time. Please explain the implications of this statement for channel management strategy in more detail.

Answer 1

Channel Management & Technological Progress

Channel management strategy finds managing partners for continued supply of goods from the producers to the consumers. As the name implies, the chain of distribution effectively participates in supplying the produced goods to the consumers. Thus, it becomes easy for the producers to distribute and supplying their products to their customers. Technological progress being an important factor, effectively participates in the channel of distribution. Technological progress could reduce the efforts needed in channel management between material suppliers, manufacturers, distributors and resellers leading to better efficiency in distribution of commodities.

Technological tools along with dedication and cooperation is an effective method to increase the efficiency of the channel management. Ability to order instantly, reducing the time gap for ordering and providing other information could all increase the ability of supply of goods with the help of channel management. Facilities like order tracking, connecting between the producer and consumer more easily; automated process of packing, shipping delivering using advanced technologies could increase the efficiency of the market to better distribute products. Technology could reduce the physical cost of channel management. Channel between the producer and the consumer become more transparent, cheap and also well informed. Online markets like Flipkart, Amazon etc. use the advantage of technological progress to stand as the channel of management in the market with high competence.