When should an additional distribution channel be considered, according to general rules?

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An additional distribution channel should be considered when it adds more value than it costs because this principle encapsulates the essence of strategic decision-making in logistics and distribution. The goal of adding a new channel is to enhance the overall service or product offering to customers while ensuring that the associated costs do not outweigh the benefits.

Adding value might manifest in various ways, such as improved customer service, increased market reach, enhanced product visibility, or superior delivery capabilities. If the benefits provided by the new distribution channel, such as increased customer satisfaction or higher sales volumes, exceed the costs, then it becomes a worthwhile investment.

The other options, while they may seem relevant, do not encapsulate the comprehensive rationale for integrating new distribution channels. For instance, simply increasing cost efficiency does not guarantee that value is being added; it’s possible to lower costs and simultaneously reduce service quality. Similarly, significant investments might be warranted, but they should only be undertaken if they align with the goal of adding more value. Finally, a decrease in delivery time can be beneficial but should be evaluated in conjunction with the overall value proposition, as it alone does not reflect a comprehensive assessment of the potential channel's effectiveness.

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