- Original Equipment Manufacturer, Where the Product will become part of the OEM's product
- Value Added Reseller. There the Product will be added to reseller's product to create solution
- Direct sales by the Suppliers own sales force.
- Direct Sales by a Supplier owned or controlled Subsidiary.
- Sales by a Manufacturer's representative, Broker of Agent that is authorized by the Supplier
- Sales by Supplier via the Internet
- Resell to retailers or end customers
- Sell in conjunction with value added services they provide
In locations where the Supplier didn’t have sufficient business to warrant direct sales staff on their own, they may conduct a form of direct sales through manufacturer’s representatives who will sell on their behalf for a commission. If you are buying and a manufacturer’s rep is involved, they are adding cost to your purchases so if possible, its always better to deal direct. For any sales that the Supplier doesn’t want to focus it selling resources directly on they will use third party sales channels such as distributors or value added resellers.
Many sales operations also do tiering of channels. Suppliers will look at your business volumes and importance to them as a Customer and will determine what channel is appropriate for sales to you. If they are willing to sell direct they will also determine what sales tier they will place you in. For example if you are a tier 1 OEM customer, you will normally get their best pricing and terms. The tier the place you in impacts both the price you will pay and terms they will offer. If a proposed term will increase their cost or risk you may not get it. It a form of risk and reward. Unless they feel that the risk is manageable or the cost is something them can manage, they'll probably reject it. If you can't deal with them, it may drive you to Internet sales or distribution where you will get less.