While many organizations are turning to mergers and acquisitions to manage dynamic shifts in the market, channel partners can create significant value in company performance.
Growing Role of Channel Partners in Manufacturing Industry
A dynamic balance between channel partners and manufacturers is a key foundation for business success, growth, and profitability. The channel partners can offer several benefits for manufacturing companies, including:
Access to new markets
Channel partners help the manufacturing companies by handling sales in the secondary and tertiary areas that are typically away from the manufacturing plant. The Channel partners take responsibility for safe logistics, accurate deliveries, and reliable service for manufacturing companies that would otherwise require significant investment for market penetration and increasing market shares in distant areas.
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Channel partners reduce costs by providing warehousing, distribution and logistics services, and marketing and sales support. These services eliminate the involvement of multiple partners and organizations, resulting in the least possible interruptions in business operations. Reduced costs can help manufacturing companies enhance business competitiveness, faster-to-market times and drive revenue growth
Enhanced customer service
Channel partners can provide valuable insights into customer preferences and feedback that can be used to inform future product developments. They have a direct understanding of the local market and greater insights and unique perspectives that manufacturers can utilize to enhance the customer experience. Additionally, they can help differentiate manufacturers from the competition by providing value-added services, such as product demonstrations, events, and after-sales service.
The organization's success relies on the capability and efficiency of handling and maintaining its relationships with its channel partners. By combining the latest technologies in Artificial Intelligence, data analytics, and demand forecasting, the manufacturers can increase their margins, efficiency, and relationships with their existing partners.