Menu
INSIGHT: Key challenges in the channel

INSIGHT: Key challenges in the channel

What are some of the challenges that partners are facing when it comes to doing business with their vendors?

Jan De Bondt is a partner at Devenyn & Partners, a European-based management consultancy firm.

During this Channel Expert Q&A session with Computer Market Research, De Bondt identifies certain challenges taking place in modern distribution channels.

What are some of the challenges that partners are facing when it comes to doing business with their vendors?

Today, the majority of channel partners struggle with vendor management. On average, a partner sells product from between 15 to 30 vendors [or more], which requires signifigant time and resources.

Another challenge for parters is the way in which vendors communicate with their channels. Partners receive a multitude of messages, mostly e-mails sent from corporate offices, regional offices, distributors and from local channel account managers.

Partners tend to get the same message 4-6 times. Add social media into the mix and the amount of messages explodes exponentially. You could argue that more is better, but this tends to have the exact opposite effect.

Channel partners also struggle to comply with partner program rules. The main reasons for this are that programs tend to frequently change, are too complex, or often demonstrate a lack of transparency.

Partner noncompliance almost always leads to less favorable conditions, thus less profitability. On the other hand, complex partner programs can make it difficult for vendors to recruit new partners, even if the technology is worth selling.

What is a challenge that vendors are currently facing?

The amount of Partner-Facing Time [PFT] that channel account managers have with their partners. PFT is the amount of time spent by a channel account manager in the field versus time spent in the office.

In reality, it’s time that can be spent on actual channel sales and development.

How much time should channel account managers be dedicating in the field?

A healthy PFT percentage is above 60 per cent. Administrative related tasks outside of the field should ideally be kept to 20-40 per cent of a channel account manager’s time.

As a general rule of thumb, if it doesn’t immediately relate to partner business, it should consume as little time as possible. After all, the action happens in the field, not in the office.

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags distribution channelssocial media

Featured

Slideshows

Arrow exclusively introduces Tenable Network Security to A/NZ channel

Arrow exclusively introduces Tenable Network Security to A/NZ channel

Arrow Electronics introduced Tenable Network Security to local resellers in Sydney last week, officially launching the distributor's latest security partnership across Australia and New Zealand. Representing the first direct distribution agreement locally for Tenable specifically, the deal sees Arrow deliver security solutions directly to mid-market and enterprise channel partners on both sides of the Tasman.

Arrow exclusively introduces Tenable Network Security to A/NZ channel
Examining the changing job scene in the Kiwi channel

Examining the changing job scene in the Kiwi channel

Typically, the New Year brings new opportunities for personnel within the Kiwi channel. 2017 started no differently, with a host of appointments, departures and reshuffles across vendor, distributor and reseller businesses. As a result, the job scene across New Zealand has changed - here’s a run down of who is working where in the year ahead…

Examining the changing job scene in the Kiwi channel
​What are the top 10 tech trends for New Zealand in 2017?

​What are the top 10 tech trends for New Zealand in 2017?

Digital Transformation (DX) has been a critical topic for business over the last few years and IDC is now predicting a step change as DX reaches macroeconomic levels. By 2020 a DX economy will emerge and it will become the core of what New Zealand industries focus on. From the board level through to the C-Suite, Kiwi organisations must be prepared to think and act digital when the DX economy emerges in 2017.

​What are the top 10 tech trends for New Zealand in 2017?
Show Comments