Channel Management thoughts Suppliers

1. The corporate decision has been made to market via the channel, rather than go direct.

2. The costs associated with changing to a direct sales model would significantly affect the bottom line in the short-term.  As a supplier, your company wants to continue to specialize in the business model of manufacture or supply only.

3. A sales distribution channel can account for anywhere between 15% and 41% of the final price of the goods and services.

4. Suppliers can reduce their costs and significantly affect their bottom line or profits, by making relatively small changes to the sales marketing channel.

5. Careful decisions have to be made on sales channel intensity (exclusive, selective or intensive)  i.e. the number of partners at each level, or within each geographical area.

6. Conflict management is often required when a variety of sales channels are set-up - e.g. internet operations, direct telephone sales and indirect sales channels.

7. Would simplifying your product or service possibly open up new sales channels of distribution?

8. Can your company value-add by hosting or linking your sales partners Web sites to your site?

9. Would it be beneficial to provide search tools on your Web site to locate the end-user's nearest sales outlet?

10. Run a dedicated Web site for your sales channel partners that includes all e-commerce facilities, to provide a value-add.

11. Consider where the end-users expect to purchase your companies products and services, and what level of service they want to receive.

12. Support and product development  must be emphasised throughout the sale channel, therefore delivering better value to the end-users.  Less emphasis on just selling to the sales channel.

13. Less emphasis on account selling and more emphasis on business development.

14. Subscription or rental of services or product can be another way for a supplier to keep control of the end-user, yet still work with sales channel partners - e.g. application service provision.

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