Building Relationships in Distribution Channels

Strategic partnering is a method of developing a relationship between two members of a distribution channel based on the growth of understanding, trust and shared information. It does not rely on personal relationships between individuals but is initiated at the highest management levels and becomes a part of the corporate structures concerned. The resulting development of integrated marketing plans, joint strategies and tactics allows the partner organisations to develop and maintain strategic fit between their capabilities and goals and their changing market opportunities. Electronic data interchange technology confers direct benefits through lower transaction costs, faster response times and more cost‐effective service to customers.