CHANNEL FLOWS AND EFFICIENCY. Generic channel flows Sharing of tasks among Manufacturers Intermediaries Retailers Consumers Rewards and terms to participants. Generic Channel Flows. Physical possession Ownership Promotion Negotiation Financing Risking Ordering Payment. COLA.
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Advertising for product
Settling terms of deal
Responsibilities of each side
Quantities sold and offered
Miscellaneous (e.g., replacement of spoilage)Promotion and Negotiation
Buyer (e.g., wholesaler or retailer)
Third party (e.g., bank holds title to cars on dealer lot)
Terms (e.g., discount for prompt payment)
Ability to raise capital and cost of capital
Over-estimated demandFinancing and Risk Taking