by P. Onh

Created on: May 30, 2009

Partner Relationship Management, also known as PRM, is the process by which partners in a manufacturing channel, such as third party manufacturers, brand label owners, marketing organizations, and distributors, manage their business relationships. In the most archaic sense of the phrase, Partner Relationship Management refers to the way partners do business with one another and share information. However, in more recent years, PRM has been observed as an opportunity in business process efficiency, because as channel partners become more global, partner relationships become more and more difficult to manage.

In this 1999 study on Channel and Partner Relationship Management, it was reported that an effective Information Technology solution for managing the flow of information is needed to maximize PRM, because partners are wasting valuable time digging for the information they need to do business. In a nutshell, it all comes down to communication - having the critical information about processes, vendor agreements, channel strategies, inventory, and other important data, all at their fingertips, and accessible within seconds. Not having all the information has cost partners not only time in surfing and digging, but often profitability, when the needed information was simply not there, or when the partners were not aware of the existence of information.

Several database companies have developed Partner Relationship Management database tools, including Siebel Partner Relationship Management and PeopleSoft Enterprise Partner Relationship Management, both by Oracle. The software applications boast not only organized compilation of existing information, but also tools to maximize overall channel relationship strategies, such as marketing, sales, commerce, and service. The PeopleSoft application, for instance, advertises modules in Partner Collaborative Commerce, Partner Collaborative Sales, Partner Lifecycle Marketing, Partner Platform, and Partner Strategic Planning.

Another critical piece of any Information Technology solution crossing the doors of an internal company is the security to provide the data, strategies, and ongoing channel management, under a secure, intranet environment. This is a feature that has been built into Partner Relationship Management software packages, because the database developers have responded to the need for security that partners have expressed.

In the end, having information readily available across channel partner entities is critical in this highly competitive market. With sales, marketing, manufacturing, and distribution decisions made on a daily basis, the knowledge of inventory, manufacturing capability, vendor pricing, and other strategies that cross the supply chain need to be easy to find, clear, and complete. When these functions cross partner companies, sharing the information becomes more difficult. Partner Relationship Management tools are the solution to this problem.

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