Channel effectiveness risk is the risk that poorly performing or positioned supply chains or distribution channels may threaten a firm's capacity to effectively and efficiently interact with suppliers and inhibit the ability to access current and potential customers and end users. An organization’s supply chain and distribution channels encompass the network of resources and processes involved in producing and delivering final products. To succeed, an enterprise must commit to product availability, price and delivery date at the time of order entry.

This tool highlights key performance indicators and questions organizations should address when measuring channel effectiveness.