channel-management-solutions

Software | Solutions

ERP FOR THE CHANNEL

At a high level, ERP systems like SAP, Oracle, JD Edwards, NetSuite and Microsoft Dyamics are focused on transactions, data, and information within the 4 walls of an organization. They provide excellent coordination and control of activities within the organization.

But, these platforms are not purpose-built for data and transactions that originate outside of the organization - as with hundreds or thousands of channel partners a typical OEM might have.

In the past 10 years, many companies - especially tech-based firms serving B2B markets - have seen a large shift away from working with customers directly to leveraging channel partners. 

This has created many advantages, but at the same time has put a strain on IT systems to track and manage these channels. The result is a fuzzy understanding of what's actually happening in the channel and ultimately, revenue loss.

ERP - legacy SYSTEM OF TRUTH built for direct sales

In the 1990s, companies adopted on-premise Enterprise Resource Planning (ERP) systems to manage order processing, fulfillment, production planning, inventory control, financial reporting, HR, and many other core business functions.

erp-for-the-channelBroadly speaking, these ERP software systems were and are highly complex, inter-related modules that act as the central nervous system of organizations. They were largely designed to support the "sell direct" business model - that is, a firm's own sales force selling its products directly to end customers.

Millions of dollars and many person-years of effort were spent to create this "one system of truth" for the classic direct-sales organization. By "one system of truth" we mean a single, recognized data set that feeds all related functions and reporting - production, accounting, sales, and so on. There are controls and processes to ensure data integrity, consistency, and quality.

But this no longer works for the channel. See why you need a single system of truth for channel management.

erp for the channel - channel management software

Entomo's SmartHub® all-in-one channel management software platform transforms how companies manage their distribution channels. Entomo's fully integrated software stack enables unmatched channel visibility, compliance and partner collaboration. Benefits include clean, trustworthy data, validated claims, revenue growth, reduced channel incentive overpayments, reduced inventory and compliance costs and faster financial close cycles. See more on Entomo vs. ERP.

THE SHIFT TO THE CHANNEL

Cut to today. Many companies are now selling over 70% of their product through distributors, VARs and other indirect channel partners. This is a seismic shift from the 1990s, when technology companies typically sold only 10-20% of product through the channel. The big ERP systems no longer represent the "one system of truth" in this new world. In fact, without hugely expensive major customization to most legacy ERP systems, there is literally nowhere to even put the data required to manage the channel business. For example:

  • Inventory often resides at the channel partner, not at the company's own distribution centers
  • Invoicing is done through the channel partner
  • Incentive programs designed to help channel partners win or maintain business were never concepts built into the fabric of the major ERP systems of the past
  • Wide access by channel partners to critical data and process flows via a channel partner portals violated most ERP licensing and security models.

What's needed is a purpose-built system, designed specifically for companies who primarily go-to-market through distributors, VARs, and other channel partners to reach their end customer.

fully integrated Channel Management software

Entomo's channel management software and solutions are organized broadly by function. Specific modules can be implemented according to your specific situation and requirements.channel-management-solutions

  • Channel Data Management: Data aggregation, normalization and enrichment from disparate external sources 
  • Gross Margin Management: Transaction valuation, channel incentives (MDFs, rebates, etc.), inventory reconciliation and revenue-recognition activities
  • Sales Performance Management: Sales credit assignments, commission split calculations and commissionable dollar calculations for internal and external sales channels
  • Opportunity Management: Partner portal, channel scorecards and deal/design registration
  • Channel Business Intelligence: Real-time reporting, dashboards and analytics with an interactive business-intelligence platform for strategic planning and channel performance management

 

SSAE 16 Type II - Assure Professional

SSAE 16 COMPLIANT

"Completing the SSAE 16 requirements reflects our commitment to our customers, to international security and data integrity, and to control standards,” More.

Salesforce

SALESFORCE INTEGRATION

"Automate, streamline, and manage core channel activities to drive increased revenue and partner performance, directly from your Salesforce interface,” More.

How to Manage your Channel with Salesforce.com