Assessments of the Challenges of Indirect Distribution Channels: The Case of Sugar Corporation

Abstract

The purpose of this study is to Assessing of the Challenges of Indirect Distribution Channels: The Case of Sugar Corporation, In light of this objective, the study employed descriptive research and simple random/probability sampling design. Consequently, the study selected a sample of 69 individuals from 136 population. The data analyzed on quantitative basis using descriptive statistics. The analysis and finding shows the basic challenges of the distribution is Lack of distributor’s capacity in finance, skill and consistency, consideration of distribution task as a secondary business, Sales Price Determination process, channel Controlling Process and law capacity of using IT. Also distributors out of the distribution system because of lesser profit, high target of sugar sales quota, strict agreement & controlling process, Lack of motivation and support from Sugar Corporation to its channel members, lack of penalty on distribution agreement violation is applied only on distributors are the main reason for conflicts of channels in the distribution activities. The researcher recommends the Sugar Corporation and Distributors should have maintain automated distribution system, Sugar Corporation shall provide training, support for distributors, maintain penalty on agreement violation for both parties, maintain equal treatment for all distributors and considering the distribution task as a primary business.