Question

How can a company use partner relationship management to create a successful business?

400 words+ please

Answer 1

Partner Relationship Management (PRM) is used to increase profitability not only for the parent company but for the partners also. There are many factors associated with it and the management tool helps the company and partners to work hand in hand for development of inter related partners. This technology uses data of customers, their buying patterns and many other related factors.

Let us consider the example of some retail store selling men apparels. Let us say, that the company designed a checkered shirt and it was a hit in market during the duration of Jan-May. Every week customers are getting attracted to this new pattern of shirt. Now, when company plans to manufacture more numbers, the vendors (partners) get the information accordingly like; the quantity of raw material to be delivered, when it is supposed to be delivered, How many buttons are supposed to be delivered, number of packing boxes to be delivered. Similarly the stores also get the updates that when the final stock will be available with them.

Hence we saw that the whole objective was to get sales increased and making the customers satisfied. This indirectly manages Customer Relationships as well, but here major focus is to make relationships with Partners. This program is based on technology wherein streamline information is flown between the partners. This helps in:

• Getting new channel partners
• Executing marketing campaigns
• Managing leads
• Performance management
• Training management
• Introducing new product (and trends)
• Assisting other inter-related activities

The overall motto is to establish a streamline channel and to effectively drive the communication process to complete the sales channel (including, production, distribution, marketing etc). As the customers expectation increases due to increase in earning pattern, spending pattern, increasing competitions. These activities are important these days to stay ahead in the market. It thus helps to gain edge over competitors and managing internal and external relationships.

A partnership these days produces astonishing results. For this the organization is supposed to follow its missions by having proper information flow, timely flow of information, mutual sharing of ideas, hence getting benefitted. One partner must understand needs of other partners as well and hence this tool helps in giving results on time. When the information flows freely on time, partners trust each other, when partners are loyal to each other these results in mutual success of both the companies. In short the control over various functions among partners when executed properly is profitable for all the partners related to a business.