A firm must become involved in the channel design process when it is considering entering the market with a new product or when existing supply chains are falling short of performance objectives.
The design process consists of the following steps:
1. Establish objectives.
2. Formulate a strategy.
3. Determine structure alternatives.
4. Evaluate structure alternatives.
5. Select structure.
6. Determine alternatives for individual channel members.
7. Evaluate and select individual members.
8. Measure and evaluate channel pertormance.
9. Evaluate alternatives when performance objectives are not met, or attractive new options become available.