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The element of marketing mix is ' supply '.The following are the functions of channels of supply.

1. Arrangement : An intermediary receives the method of getting goods from various sources. But, the goods received differ when it comes to features, quality and size. These goods are arranged or types by the intermediary into homogeneous groups depending on their characteristics.

2. Collection: A middle men collects and maintains large stock of the goods so as to ensure an easy and continuous flow of supply.

3. Apportionment and Packing: A middle men breaks the whole lot of goods into , units that are marketable that are little. The goods are repacked by it into convenient packages.

4. Building Variety : An intermediary gets various goods from different sources and assembles them at a single place. Consequently, it maintains a variety of goods. As an example, a grocer keeps a wide selection of products for sale.

5. Promotion of Merchandise : They assist in the promotion actions undertaken by the makers. For example, the makers use advertising for the promotion of the product. By placing banner ads and displays the intermediaries can assist this process.