Channel Partners refer to the intermediaries that help in a smooth flow of goods from the manufacturing facility to the end consumer. Channel Partners vary as per the product type, sales target and requirement of the organization. The partners depend to a great extent on the one-level, two-level or three-level channel used for the product transfer from one place to another. Types of Channel Partners – Wholesalers Wholesalers are the channel partners who buy in bulk from the manufacturer, store them and sell to distributors or resellers. This channel partner does not transform the goods instead sell them in the same condition that they have purchased. Some wholesalers deal in a wide range of various products whereas others in a limited range Types of Channel Partners – Wholesalers (Functions) - Wholesalers can easily assemble goods as per the consumer requirement - Play an important part in the supply chain - Handle sales for the manufacturer by selling to the distributor - Provide an effective salesforce - Conduct marketing and research to identify consumer needs - Minimize distribution cost - Provide warehousing and delivery facilities - Offers credit options - Undertake the risk of inventory theft and product deterioration Types of Channel Partners – Distributors Distributors are the channel partners who buy from the wholesaler and sell to retailers. This intermediary in the supply chain sells in smaller quantities compared to the wholesalers Types of Channel Partners – Distributors (Functions) - Ensures product availability - Ensures product promotion - Provides in-depth support - Conduct market research - Provide financing options when necessary Types of Channel Partners – Retailers Retailers are the channel partners who buy from the wholesalers, distributors and also from agents and sells the goods to the end customer. These intermediaries vary by the size, price and type of products they sell Types of Channel Partners – Retailers (Functions) - Purchases in bulk but sells as per customer requirement in comparatively small quantity - Provides a wide range of products and services - Holding inventory - Offers convenient locations so that the customers are not inconvenienced - Offers credit and instalment services - Offers feedback - Optimizes the value of the products Example 1. McLane 2. Under Armour This video is on Channel Partners and it has the following sub-topics. Time Stamps 0:00 Introduction 00:52 Types of Channel Partners – Wholesalers 01:29 Types of Channel Partners – Wholesalers (Functions) 03:01 Types of Channel Partners – Distributors 03:46 Types of Channel Partners – Distributors (Functions) 05:05 Types of Channel Partners – Retailers 05:16 Types of Channel Partners – Retailers (Functions) 07:28 Example – Wholesaler (McLane) 08:21 Example – Distribution System (Under Armour)