How Vendors Are Supporting Partners with COVID-19 Relief

Written by Christine Horton
April 8, 2020

A growing number of vendors and distributors have initiatives for partners during the pandemic.

… the U.K. channel, and through its trusted partners can offer leasing, loans and financing solutions to ease the burden on cash flow. Additionally, continuous review of credit and finance offerings and credit lines will facilitate the flow of business for valued partners.”

How Can Vendors Further Support Partners?

Canalys has several recommendations for how vendors can help partners with COVID-19 relief through the imminent slowdown.

“During the 2008-2009 financial crisis, vendors that quickly adjusted partner incentive schemes and extended financial support to the channel tended to see the greatest stability in their channel ecosystem following the crisis,” it noted.

It said vendors should establish regular communication with as many partners as possible through virtual and digital platforms. They should also quickly establish digital events with their top partners and maintain a two-way flow of information. Think such things as partner advisory boards to replace face-to-face meetings

Vendors should also be flexible in planning and targeting, it said. They will have to abandon many quarterly business reviews and other planning sessions for the time being. Therefore, targets should reflect a lower demand environment and limitations to product availability.

“These will be short-term measures. Postponed deals can be expected to return by the end of the year, and partners will remember those vendors who offered the most flexibility and support,” it said.

The analyst also advised removing short-term sales targets and moving to linear rebate payments. Removing complex and admin-heavy processes for other areas, like MDF, will also help partners through a challenging period. Extending certification requirements is another example.

Elsewhere, vendors can use their financing divisions to provide more low-interest or 0% financing offers to partners and extend payment terms for the channel. In addition, sharing sales and technical headcount resources with their key partners can help with business continuity in the channel. Finally, Canalys said vendors should extend free usage rights to partners, as well as customers, for specific software or cloud-based technologies, supported by online demo and PoC tools.

Unchartered Territory

Expect more aggressive COVID-19 relief from the big vendors as risk to the channel’s financial health intensifies, Edwards said. And while efforts will be concentrated on large partners, midmarket and smaller partners face the most immediate threat.

Nevertheless, Exclusive Networks’ Desmond believes the true nature of the channel will come through as it enters uncharted territory.

“Despite the severity, uncertainty and rapidly changing nature of the situation, the willingness of our people to adapt and maintain service and support, in close harmony with our vendors and channel partners, is a great testament to …