As the old saying goes, "You can eliminate the middleman, but not the middleman’s functions.

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In performing these functions, a channel may include any of the following components, each
typically having distinct capabilities and constraints within the marketing strategy of the
producer.
Many buying decisions- especially those involving business-to-business transactions-involve
multiple personnel at user accounts, Channel Management including purchasing, production,
engineering, and/or financial personnel. Finally, the direct sales force also typically seeks to
develop and maintain good personal relationships with intermediaries to increase that supplier's
support and awareness at the reseller level of the channel.
Traditionally, the primary function of a distributor is to play a cost-transfer role in the channel.
Anyone product sold by a supplier often cannot attract special attention at distributors, and an
essential task in channel management is the ongoing development and maintenance of reseller
attention and sales support.
relations. Channels Relations an essential aspect of channel management is the development and
maintenance of good relationships between suppliers and resellers.
In most marketing situations, the producer faces a tradeoff between its ability to control essential
channel functions and the financial and human resources required to exercise that control.
The more intermediaries involved in getting a supplier's product to market, the less control that
supplier generally can exercise over the flow of its product through the channel and the way it is
presented to customers. As the number of intermediaries in a distribution channel increases, so
generally do the opportunities for transshipment, differing levels of service and delivery by
various intermediaries, different stocking levels, and perhaps overlapping sales efforts.
On the other hand, reducing the length and breadth of the channel generally requires that the
supplier perform more channel functions itself.
Some business units have the financial resources needed to perform most or all channel functions
for their product lines, if management so desires; whereas other business units, operating with
constrained financial resources lack the ability to perform directly many channel functions,
regardless of management's desire for direct control over these functions and depending upon the
nature of the product or market, management's need for control over a given channel function
may be relatively high or low.