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Everyone wants more. Whether the discussion is centered on revenue, margin or great talent, growth of some type is typically the number one goal of any for-profit organization. But that objective can be extremely hard to achieve for channel firms if key stakeholders don’t understand how to build relationships and strategic alliances. That’s just the way it works in the IT B2B ecosystem, and more so for those attempting to design, build, deliver and support a diverse set of solutions.
Partnerships are not only a means to that end, but a crucial element of the IT channel. Solution providers typically collaborate with six or more key suppliers and as many as twenty other organizations to deliver their solutions and services portfolios. Large providers with expansive line cards may have an ecosystem two, three or more times those numbers. And when distributors, peers and other outsource partners are added to that count, the connection count can be staggering, limit beneficial engagements and make management of the whole thing quite difficult. The challenges facing time and resource-challenged providers often limit their ability to succeed.
How can you possibly be expected to work effectively with the dozens of vendors in your supply chain? The truth is, you shouldn’t. The 80/20 rule applies as much to partnerships as it does in sales. Channel firms need to focus more of their time and energy on strengthening relationships with the vendors and distribution partners who support their core business practices. That group may also include peers and third party experts that add that essential element to solutions and support programs, especially in in the security and compliance arena.
The key channel relationships used to be centered on hardware and software. In some areas, they still are, but the growth of managed services, the cloud and other innovative offerings have altered and shifted traditional partner programs. Providers priorities have changed as well. Rebates and spiff are nice, but some would rather receive design and pre-sales support, or additional marketing dollars to fuel their demand generation engines. That’s why many VARs and MSPs have doubled down; more of their time and resource investments are focused on a few, high-value vendors.
Those suppliers deliver the mix of products and/or services that a channel firm (and its customers) needs. On the flip side, they offer partner and support programs that help everyone be more successful. The ultimate goal is to create a win-win relationship (or win-win-win when you include customers) for all involved.
The first step in that process is reflection. When was the last time your team sat down to discuss the pros and cons of the various parts of your portfolio? Do you regularly assess alternate manufacturers, cloud providers and distributors? With so many moving parts and variables, evaluating components and vendor relationships is never easy, but every channel firm should make it part of their annual, if not quarterly review process.
That helps ensure your customers, employees and other stakeholders are getting top-notch solutions and services ̶ while your company receives the support and ROI it deserves from the supply chain. The good news? Establishing those relationships with key suppliers doesn’t need to be difficult. In fact, the CompTIA Quick Start Guide to Profitable Partnering in the IT Channel details key concerns and opportunities and offers great insight for industrious solution providers. It’s a free and enlightening resource for channel firms looking to strengthen their connections and their business models. Ready to boost your relationship IQ? Check out the recommendations and put some of these best practices in place today.
Brian Sherman is Chief Content Officer at GetChanneled, a channel business development and marketing firm. He served previously as chief editor at Business Solutions magazine and senior director of industry alliances with Autotask. Contact Brian at Bsherman@getchanneled.com
