Choosing the right set of partners and managing relations with them can make a difference between success and failure in the new business environment. The roots of Partner Relationship Management (PRM) lies in technologies and methodologies such as e-business, ERP, workflow, business intelligence, supply chain management, document management, collaboration, and so on. PRM puts together these existing elements and is coming to the fore today because of changes in the market dynamics. PRM-related practices and solutions are gaining a fresh breath of life, catching up with a new breed of evolving business and channel dynamics.
Almost every business has adopted e-commerce these days. And rightly so, because the Internet provides effective ways of marketing and selling all types of goods. Yet, most firms are continuing to rely on their indirect sales channels to reach certain markets, add value and deliver a complete solution. As predicted, Internet-driven direct marketing and sales did not completely replace the indirect channels. The thought of doing away with the intermediaries has not come true so far, despite the growth of e-commerce. In fact, the widespread adoption of e-business, across the industries, and continued globalization and outsourcing practices have enhanced the need for reaching global markets and hence, the need to rely on indirect sales and distribution channels continued. Most vendors or manufacturers are finding ways to integrate and continue to engage in indirect sales (third-party) channels to reach their target markets and customers.
In fact, adopting a multi-channel strategy has become indispensable for the vendors, as customers prefer to shop both offline and online. Selling via third- party or indirect channels can be an expensive endeavor. In addition, it involves costs of training, marketing communications, sales incentives, etc. If not properly managed, the whole exercise will affect the margins. Of course, channel partners are indeed essential to the vendors in providing services to complete the sales and to obtain product consulting for developing the right products, while instituting seamless online application and registration processes. Establishing and managing channel relationships will help the firms to reduce these costs and streamline the supply chain operations while enhancing customer satisfaction. As a result, companies are warming up to adopt Partner Relationship Management (PRM) practices and its associated IT solutions. |
