The term "Channels" is used frequently in reference to sales and marketing, but what does it have to do with Purchasing? The answer is simple. Every Company has their Sales Channels or the methods by which selling occurs on behalf of the company. For example the following is a list of some examples a supplier may have:
- Original Equipment Manufacturer, Product will become part of the OEM's product
- Value Added Reseller. Product will be added to reseller's product to create solution
- Direct. Sold to customers by sales force.
- Subsidiary. Sold through subsidiary that may be wholly or partially owned.
- Internet sales by Supplier.
- Distributor. Sales to distributors who will resell to either retailers or customers
- Manufacturers Representative, Broker or Agent. Sales to locations without subsidiaries
- Value added Dist. Sales to distributors who provide value such as training, installation