When the chain is as closely interlinked as it is in the channel, then it’s a simple rule that ensures the health of all – be fit to stay strong. Any weak link will have a negative impact on all. Manufacturers owe it to their distributors to share their product roadmap with them, thus reducing the occurrence of product dumping. Distributors need to protect the resellers’ interest by ensuring that every new technology/product launched has a proper threshold limit for the launch. While the resellers’ contribution is in generating the right demand and getting the buyer-technology co-relation as right as possible.
Alas! Unfortunately, though this sounds so simple, the reality is very different. The chain does not work so smoothly at all.
There is a huge amount of distrust that is going around in the channel. Each layer in the channel uses its might to subjugate the one below it. As a result, what has emerged over the years is a chain that, though interlinked, is not very strong. Bickering and backbiting are rampant at all levels. If money didn’t matter so much, each one would like to ‘Get back’ at someone for unfair treatment. And this attitude is not helping anybody. As long as the going is smooth, this chain will hold. But the foundation is not so strong for it to withstand financial strains. Too often in the past we have seen instances of chunks of this chain falling apart when faced with financial difficulties.
When researching for the “Cover Story” of the May 14th issue of 360 Magazine, “De-Risking the Business for the Channel”, we realized that there are solutions to lower the risk faced by channel partners, but what is missing is the willingness to implement them. At every level, players need to realize that they cannot stay profitable if the one they are dealing with is ill. Sickness has a way of spreading rapidly, so the faster it is curbed, the better it is for the health of the partners.
The need for transparent and healthy business environment is not just urgent, it’s compelling.