Channel partner strategies for manufacturing success

According to Salesforce’s “Trends in Manufacturing” report, 80% of manufacturers sell through distributors, dealers, and franchises. These intermediaries serve as an extension of your team, often shaping your brand’s first impression in new markets. They can help you gain visibility, expand your reach, and build trust with potential clients. Additionally, their services free up your internal resources, driving cost savings and greater efficiency.

What has changed in recent years is how manufacturers view these partnerships. 79% of leaders agree that channel partners strengthen their brand—up from just 63% in 2020—while 83% believe partners add value to their products, a notable jump from 74%.

Most manufacturers acknowledge the strategic value of these relationships, yet few are tapping into their full potential. The gap between what they could achieve and current performance creates both opportunities and challenges, pushing industry leaders to rethink how they manage their partnerships.

The channel partnership reality check

Channel partnerships play a vital role in organisational success, with a direct impact on profitability and long-term growth. However, performance metrics tell a more nuanced story:

• Only 42% of manufacturers exceed profit margin targets through partner channels.

• Just 46% surpass ROI goals for partner marketing campaigns.

• A mere 38% exceed average order value objectives via partner sales.

• As few as 43% meet or exceed sales volume targets with partners.
• Just 45% outperform inventory and order fulfilment efficiency goals.

The above figures, which are drawn from Salesforce’s “Trends in Manufacturing” report, reveal a significant opportunity gap: partnerships that hold strategic value but are not yet optimised for peak performance. It’s like running a production line at half capacity—you know the machine can do more, but something is holding it back.

This disconnect explains why nearly all manufacturers surveyed (96%) were introducing changes to their partner operations, with 22% planning complete overhauls.

What’s driving channel initiatives?

From margin pressures to evolving customer expectations, several factors are shaping the relationships between manufacturers and channel partners. Per Salesforce’s report, the key drivers behind this shift include:

• Improved partner communications tops the list, with 46% of manufacturers citing it as a primary driver. This reflects a growing recognition that transparency, consistency, and clarity in communications form the foundation of effective partnerships.

• Increasing pressure on margins and profitability ranks second (43%), highlighting how channel economics directly impact overall business performance. In an era of tight margins, optimising channel profitability is critical to business survival and growth.

• Expanded market reach and new customer segments (41%) tie with growing competition within the partner ecosystem (41%) for third place. These complementary factors reflect both the opportunity for broader reach and the threat of intensified competition that channel partners represent.
• Changing customer buying behaviours (40%) rounds out the top five, acknowledging that partners often serve as the primary customer touchpoint and must adapt to evolving customer expectations. Buyers often want faster delivery times, personalised service, and more sustainable options. Partners, often being the face of the brand, need tools and training to keep up.

All of the above values are below 50%, highlighting a significant opportunity to improve channel partner management. Simply put, the old “set it and forget it” no longer works. To stay competitive, manufacturers need to give partners the same level of attention and strategic investment they’d give to an in-house team.

Top priorities for channel partner operations

So, what does this renewed focus look like in practice? According to Salesforce, most manufacturers will direct their efforts toward improving customer service and support coordination.

One reason is that manufacturing firms and their partners share responsibility for customer support. But since customers often don’t know whether to call the distributor, the manufacturer, or other third parties, seamless coordination becomes essential to channel success.

As manufacturers work to enhance partner relationships, five key priorities emerge from the report:

1. Customer service alignment: End users expect seamless service experiences, whether they engage with the manufacturer or a channel partner. Poor handoffs erode customer trust, leading to diminished satisfaction and potential reputational risk.

2. Sales and marketing coordination: This focus area highlights the need for consistent messaging, aligned promotions, and coordinated sales efforts between manufacturers and partners. For instance, when a distributor pushes outdated offers, it can negatively impact a manufacturer’s overall marketing strategy and confuse customers.

3. Partner training and performance management: Partners require the right product knowledge, sales skills, and operational know-how to represent manufacturers effectively. They also need a strong understanding of service processes like post-sales support, delivery timelines, and installation requirements to deliver a seamless experience that strengthens customer trust.

5. Price protection and rebate management: Clear, transparent pricing structures keep partners engaged, prevent channel conflict, and reinforce trust between manufacturers and their network. This transparency extends to price protection policies, which ensure that both manufacturers and their partners stay aligned on product pricing, so neither undermines the other in the market.
6. Channel incentive and loyalty programmes: The right incentives can positively influence partner behaviour and performance. When manufacturers align the rewards with strategic goals, their channel partners are more likely to stay focused, engaged, and motivated to deliver results.

These priorities may vary by region or sector. For example, Japanese manufacturers place greater emphasis on incentive and loyalty programmes, whereas Nordic companies focus on customer service coordination.

The way you manage relationships with channel partners shouldn’t follow a one-size-fits-all template. Each industry and even each partner has its own dynamics and expectations.

Build more effective partner relationships

The report highlights a clear shift in manufacturer-partner relationships: moving from traditional vendor-reseller models to more collaborative, strategic channel partnerships. While this transition brings meaningful benefits, it also demands a more intentional approach from manufacturers.

Looking closer, four key elements define this evolution:

• From transactional to relational: Leading manufacturers are moving beyond one-off sales, building deeper partnerships that span marketing, service, sales, and innovation.

• From product-focused to solution-oriented: As manufacturers shift toward selling complete solutions instead of standalone products, partners must evolve from simple resellers to trusted solution providers.

• From siloed to integrated: Traditional boundaries between manufacturer and partner operations are giving way to more integrated approaches where systems, processes, and teams work together seamlessly.

• From controlling to enabling: Forward-thinking manufacturers are shifting away from oversight-heavy models, empowering their partners with the tools, training, and support they need to succeed.

As manufacturer-partner relationships evolve, having shared goals is no longer enough to drive meaningful results. This new way of working together also requires aligned strategies, access to relevant data, and accountability on both ends.

That said, let’s go over some best practices for building stronger, more effective channel partnerships.

1. Prioritise coordination and communication

Strong coordination across touchpoints represents the foundation of effective partnerships. Distributors and other intermediaries are part of your ecosystem and should be treated as such. Giving them access to sales forecasts, product roadmaps, and marketing materials helps them position your offerings with confidence. But an ecosystem isn’t static—for optimal efficiency, it must adapt over time to shifting customer expectations and market needs.

Just as important, customers may lose trust if they feel like they’re being bounced back and forth between a dealer and a factory rep. Coordination isn’t just about sharing data—it’s about showing up as one unified team. That’s why it’s critical for manufacturers to:

• Establish clear protocols for service handoffs between internal and partner teams.

• Develop consistent processes for sharing customer information and service histories.

• Create unified customer views accessible to both internal staff and partner personnel.

• Hold regular check-ins to share feedback and strengthen communication with partners beyond transactional interactions.

Implementing these practices requires a 360-degree view of your products, systems, processes, customers, and partner operations—something Salesforce Manufacturing Cloud is built to deliver. Manufacturers can leverage its capabilities to gain full visibility of the value chain, making it easier to track progress, align teams, and ensure consistent access to data across the organisation and beyond.

2. Invest in partner enablement

Would you launch a new product without first training your in-house team? Probably not. The same goes for channel partners, who need the right tools, training, and technical know-how to confidently promote and sell your products.

With that in mind, manufacturing leaders should:

• Develop comprehensive training programmes covering products, services, and support.

• Provide easy access to up-to-date marketing materials and sales collateral.

• Create digital tools that simplify ordering, service requests, and customer support.
• Establish clear performance metrics and provide regular feedback.

Since each partner plays a different role, training programmes and resources should be tailored accordingly. A chemical manufacturer, for instance, might offer compliance-focused training to one partner and application-specific workshops to another.

3. Align financial incentives with mutual goals

Financial incentives should drive the right partner behaviours, not just push for short-term sales. When rewards focus solely on volume, channel partners may prioritise quick wins over customer satisfaction. Below are some steps you can take to prevent this scenario:

• Design compensation structures that reward profitable growth rather than just volume.

• Implement transparent, easy-to-understand rebate and incentive programmes.

• Ensure price protection policies balance manufacturer needs with partner profitability.
• Recognise and reward exceptional performance through enhanced benefits.

If, say, your goal is to enter new markets, structure incentives around net new customer growth instead of just volume. That way, both you and your channel partners are motivated to build long-term value rather than chasing one-off sales.

4. Leverage technology to enhance collaboration

Make sure you have the right technology in place to manage partner operations and ensure seamless collaboration. Here are some best practices to consider:

• Deploy partner portals that provide single-point access to critical information and tools.

• Implement shared CRM systems that create unified customer views.

• Develop integrated inventory management systems for better visibility.

• Use analytics to identify opportunities and address challenges proactively.
• Tap into connected IoT data from machines and products to track their performance, anticipate service needs, and feed insights back into design and supply chain planning.

For instance, a shared CRM like Salesforce’s Partner Relationship Management, which integrates seamlessly with Manufacturing Cloud, gives you and your partners a single, consistent view of the customer. That means whether a buyer calls your factory, a regional distributor, or a local dealer, the rep sees the same service history and open opportunities. No one is left guessing.

Partner portals, on the other hand, ensure real-time access to inventory, pricing, and promotions for all parties, reducing back-and-forth emails. These platforms streamline communication, preventing inconsistencies in marketing campaigns.

5. Build relationships beyond contracts

The most successful manufacturer-partner relationships go beyond simple transactions. When you provide your partners with context, tools, and shared objectives, they’re more likely to act as an extension of your team.

Consider these best practices:

• Include your channel partners in strategic planning processes when appropriate.

• Share market insights and trends that help them sell smarter.

• Collaborate on innovation and product development initiatives.
• Establish executive-level relationships beyond day-to-day operations.

When partners are part of your long-term strategy, they become more invested in your success. Many are business owners themselves and want to be valued, supported, and trusted rather than managed.

It’s time to rethink the role of channel partners

As customer expectations rise and competition increases, the quality of channel partnerships will differentiate manufacturing leaders from laggards. Industry players who excel at partner coordination, enablement, and engagement will gain significant advantages in market reach, customer satisfaction, and overall performance.

Channel partner excellence is no longer optional but essential to long-term success—and that’s where Fluido, an experienced Salesforce partner, can help you out. With deep industry expertise, Fluido empowers manufacturers with the know-how and tools to optimise their relationships with resellers, customers, and suppliers while driving operational efficiency.

After a thorough analysis of your business needs, its specialists can set up and deploy tools like Salesforce Manufacturing Cloud to consolidate data and streamline your processes. With this approach, your channel partners and internal teams will gain full visibility into forecasts, orders, and day-to-day operations.

Explore Fluido’s Manufacturing Quick Start Packages or contact a consultant to map out your path to stronger channel partnerships. The time to act is now.