Directorate of distance education

Types of Manufacturing Strategy
Channel Strategy
It defines how products or services will be delivered to buyers 
or end users. It needs to answer questions such as: Will the product be 
sold via distributors? Which market and market segments will be served, 
which channel will be used, priorities in case of material shortage? Will 
dedicated inventories for strategic partner be kept?

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Notes
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The decisions regarding company’s assets and cost performance 
must be part of the channel strategy, including pricing, promotions, 
financing and other terms and conditions. 
Anderson suggests the set of strategies that deal more with tighter 
collaboration with the channel, the customer, and/or the end consumer: 
➢ 
Consumer Customizer
: Uses mass customization to build and 
maintain close relationships with end consumers through direct 
sales.
➢ 
Trade Focused
: Like logistics optimization, this strategy puts a 
priority on “Low price, Best-Value” for the consumer, but it focuses 
less on brand than on dedicated service to trade customers. 
➢ 
Logistics Optimizer
: Emphasizes a balance of supply chain 
efficiency and effectiveness.
The decisions regarding 
outsourcing
are an important source 
of flexibility. Through outsourcing, the company can focus on core 
competences and enhance their competitive positioning. Outsourcing of 
activities, with low strategic importance, or activities that outsourcing 
partners can do: Better, faster, or cheaper, are the areas to be considered. 
If the product, process, or technology is the source of a company’s 
differentiation, it should not be outsourced. Nevertheless, before any final 
decision is made, risks and strategic implication should be evaluated.