We have seen that a business can take its products to users in more ways than one. It can use different types of tools and structure its channel into a single tier, double or triple tier outfit. However, it cannot easily determine which one is the best. Home inventory software is designed to help businesses decide how best to run its business successfully.

A business is faced with a number of questions: Should create its own channels or use conventional intermediaries? How many wholesale points should it have to ensure satisfactory market coverage? Where should these wholesale points be located? How many retail points should a business have? Where will these retail points be located? The firm has to make a careful analysis and then select its channel design.

The main steps involved in developing home inventory software are formulation of channel objectives, identification of channel functions, analyzing the product characteristics and linking channel design to the product. In addition, evaluation of the distribution environment, including legal aspects, evaluation of company resources and matching the channel design to the resources is also very important when talking about home inventory software.

Formulation of channel objectives is the first step in planning and designing home inventory software. The objectives clarify the end result. Basically, any business firm seeks to cover a target market through its channel. The goal is to make sure that the consumer goes through minimum exertion to procure the product. Formulating objectives also plays a pivotal part to ensure that the firm is able to carry on with its manufacturing activities and remain confident that the channel will take care of the distribution job. In each of the above areas, the firm specifies the precise level it seeks to realize. The intensity of market coverage sought, the service level to be maintained and other objectives that will naturally vary from firm to firm.