Consider Channel Stewardship Over Channel Management Solutions

May 29, 2010 by  Filed under: Management 

It is more important for various businesses to utilize effective channel stewardship to guarantee beneficial and profitable results for all channel members. In the past, transporting products and services from manufacturers down to end consumers has been improved by technological advancement thanks to various applications and solutions developed. However, channel management solutions and other strategies can only do so much for a company’s distribution network.

The usual scenario involved in channels is that powerful channel members tend to bully weaker ones, the weaker participants suffer along because they believe that have no other choice, and customers are unfortunately ignored. Even though technology has significantly improved the situation by making access easier and more convenient, improving the speed of transactions, and integrating business processes, the pipelines themselves remain unchanged. It is an accepted truth that changing the channel itself seems close to impossible. The main reasons for this are because: changing the distribution involves too many entities influenced by various factors; there is a lack of leadership in guiding channel processes; and the resulting culture is embedded too deeply.

The approach that is ultimately effective to going to market is channel stewardship. It is the ability of a channel member to design a go-to-market strategy that addresses customer interest and needs and drives profits for all channel members at the same time. Anyone in the customer value chain can become the steward whether it’s the manufacturer, assembler, service provider, intermediary, and so on and so forth. Usually, in a company, this function is taken up by the CEO, a high-ranking manager or a team of senior managers.

Having an effective channel steward should be the priority over acquiring the latest channel management solutions. An effective channel steward looks at the network from the customer’s point of view thus allowing the advocacy for change among all members. This will effect a transformation of becoming a team of partners working together with a common purpose, increasing the participation along the pipelines. The endeavors will result in better primed partners to create valuable propositions to attract customers and other potential channel members.

Stewardship within the channel provides two important benefits. The main benefit is the expansion of the value for the steward’s customers and bottom line. The second benefit is a more tightly woven and adaptable channel. These are made possible through careful construction and management of business relationships so that well-performing members are rewarded appropriately, and under performing ones are identified and weeded out.

Channel stewardship is definitely more important than solutions and applications. However, combining the strategies of having a steward and utilizing the best and latest in channel management solutions is definitely the most ideal scenario for any company that wishes to grow and thrive in the current market which has become increasingly competitive over the years. The proper use of both will guarantee companies the coveted ability to compete effectively in the marketplace and improve the over-all performance of their channel in such a way that both partners and end consumers enjoy the benefits and rewards of a profitable distribution network.

A computer graduate and loves to travel. Reading current news in the internet is one of his past times. Taking pictures of the things around him fully satisfies him. He loves to play badminton and his favorite pets are cats and walk with them in the park with some dogs.

You may want to take a look at a channel management solutions web page for more information and details or you may call us directly at 877 226 2564 (TOLL FREE).

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