SME Owners who resort to Channel of Distributor for sales and distribution of their products very often end up choosing the wrong kind of channel partners and getting stuck up in their business expansion plans.
What should we look for in a good channel partner?
- Beat , Routes and Journey Cycle should be well defined. The footprint of work schedule should be clear to the channel partner.
- Manpower should be available to handle the Journey cycles defined.
- Supply Chain Management Logistics should be in place to reach out to the journey cycle for supply of goods on time.
- Godown space to stock your products. Secondary sales should be as per plan and not reactive to Tertiary demand.
- IT set up to positively use technology to track multiple products purchase and outstandings.
- Hunger for success.
- Financial stability and track record of payments to other suppliers should be good.
- Should value and understand the power to market penetration and market distribution.
Next time,. do not get overawed by the advance cheque that a potential channel is ready to give to you for the first purchase order. Assess the channel partner. He is going to be your team member and must deserve to be one. No one has a right to just enter your team just like that!