Designing and Maintaining a Delivery Channel n 95
on the probability of overall delivery channel success. All delivery networks are
designed to handle three critical functions: functional performance, reduced com-
plexity, and specialization. Decisions as to who the various players are, from internal
manufacturers’ warehouses and sales offices, to brokers/agents, wholesalers, and
retailers, and what their direct role is in selling and promoting, value-added pro-
cessing, transportation, warehousing, and merchandizing, will determine the level
of cooperation, distribution of power, and dependency among delivery channel
members.
Dividing the SCM into a process value chain and a value delivery network
provides a useful method to describe ...