The distribution channel represents the transfer of finished products or services from the producer to the consumer in order to make an exchange. The manufacturer facilitates this flow of products by selecting a specialized intermediator who has more knowledge and skills to carry out marketing activities. Intermediators effectively and efficiently deliver products to consumers and with that, they carry out functions regarding keeping supplies and satisfying demand. While intermediaries carry out sales functions, manufacturers focus on developing and improving their core business. Enterprises can have more intermediaries to expand their business, and thus build the organization's structure. Distribution channel organization can be divided into a classical distribution channel that is more difficult to manage due to loosely connected participants, and to a more effective and efficient marketing system, especially when it comes to a company that has multiple participants within a particular distribution channel. The marketing system shows various ways of connecting the participants within the distribution channel, which want to make profitability with as little difficulty as possible. There are horizontal, vertical and hybrid marketing systems. The horizontal marketing system marks co-operation at the same level of distribution channel, vertical shows collaboration from manufacturer to customer with wholesaler and retailer, and the hybrid marketing system appears in companies that manage with multiple distribution channels for several market segments. Through this paper, the channel distribution organization is presented in theory and also it is presented in practice through the business of “Končar” d. d. which manufactures equipment for further production and distribution of electricity.