Channel management is the most effective way to achieve success in channel-dependent businesses, especially when combined with other management solutions. Today, most high-tech companies are interested in investing substantial amounts of money to promote and sell products and services through partner portals and channels. However, such a multi-channel strategy is difficult to follow, hence the vital role of channel managers in the distribution chain.
A manager is typically the dominant company in the channel value chain and has a responsibility to proactively participate in the design and execution of a company’s go-to-market strategy. They expand the intra-business framework that allows different partners and end consumers to conduct business more easily and efficiently. This move increases brand value, market share and profitability. The role of delegates is based on critical elements such as coordination and influence; the different roles in the channel distribution network; excellent response to the demands and needs of the final consumer; and ROI and margins for all channel partners. But what are the specific strategies stewards employ to ensure effective channel management?
Channel management uses three strategies, which are partner portals, e-marketplace, and volume channel.
• Storefront or eBusiness Partner Portal: This strategy gives companies the ability to create specially dedicated, tailored or customized portals for channel members and their customers. These portals allow partners to offer self-service tools that can be used to browse catalogs, find product information and details, configure solutions, view change orders, track shipments, and receive payment invoices. In addition, they offer a certain set of product catalogs and pricing information that is based on the needs of partners and customers. It is deeply integrated into the channel’s acquisition system. Typically larger clients and affiliates prefer this approach.
• eMarketplace – The reality is that it is expensive and virtually unmanageable to propose partner portals for every channel partner. This makes it vitally important to reduce the number of product segments through platform standardization and functional modularization. These will then be offered through an electronic marketplace, which is more suitable for organizations that are at the forefront of their value chains. Typically beneficial to midsize businesses serving small and medium-sized businesses, this strategy is a single platform for order fulfillment and provides flexible means for partners to enable brokerage to bundle products with various accessories, services, and the like. .
• Volume Channel: This approach focuses on operational efficiencies in the distribution of product knowledge and the ongoing process of quote requests and returns. To ensure the successful execution of the model, it is important to keep in mind the key elements which are less complexity and variety of products offered, high partner and customer self-service and close monitoring of key performance indicators and distributors, and ODM/CM Agreements. Service level. This is most useful in scenarios where the complexity of the products is low.
The real challenge, however, is choosing the appropriate strategy or approach. This necessitates the need for a thorough evaluation of individual companies before making a decision. The choice should be based on a framework that depends on factors such as the relative size and domain of partners and customers, existing business relationships, and complexity of the product.