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Supply Chain Stabilization Amid Global Disruption

April 27, 2020

Chanan Greenberg, General Manager, High Tech for Model N

The COVID-19 crisis is bringing the supply chain diversification conversation into the C-suite even more than it already has been. Although not at the capacity it was in December 2019, manufacturing capacity in China is on the verge of a comeback. While the economy can’t currently leverage that capacity, it’s ensured that sourcing diversification has been elevated to a key supply-chain action companies are considering.

My conversations with companies around the world on COVID-19 challenges have allowed me to compile a view of the major work streams that companies are pursuing. High-tech companies, already exploring diversifying their supply chains amid increasing tariff pressures, are continuing to look to the future as the need for diversification takes the global stage.

While it remains uncertain when companies will invest capital in such initiatives, projects are in motion, and high-tech companies are planning for tomorrow.

I expect learnings from the outbreak will likely catapult supply chain operations to the competitive forefront, and companies that are agile enough to react quicker than their competitors could find themselves in a good position to weather any downturn instead of a playing catch-up.

Now more than ever, companies should be looking at ways to tighten up revenue operations to stay agile and be ready to bounce back when things return to normal.

In a recent Model N study, 89% of executives agree they are losing billions on revenue leakage due to poor controls over pricing discounts and volume compliance and poor visibility into channel sales and revenue performance. Yet an astounding 75% say they know they leave money on the table and do not know how to fix it.

In most high-tech companies, for example, channel sales typically represent 70% of an organization’s revenue. Companies strive to design innovative and effective channel programs, but they don’t have access to the data and tools that will make these programs successful. Unfortunately, this reality means that channel programs are usually ripe with a high level of manual oversight and mismanagement.

Contract, deal and channel management have the biggest impact on the ability to improve revenue management. These tips are for companies seeking to mitigate the impact of future disruptions:

        1. Automate the management and insights of global channel partner data
        2. Create a trusted system of record for channel sales planning – but expected and unexpected
        3. Manage, identify and match channel selling patterns and trends to maximize inventory
        4. Understand backlog orders and their impact on the channel and future end customers
        5. Introduce a revenue management continuum that breaks the siloed constraints

The near term is essential, but don’t lose focus on the longer term. With automation and data accuracy, you can better manage your channel, improve business decisions, and accelerate success.

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