3 Reasons Automated Channel POS is Important to Your Bottom Line
Incomplete channel POS and inventory data results in a host of problems for manufacturers.
In order to facilitate sustainable growth, channel-driven producers need detailed visibility into the performance of products and partners.
The lack of quality and timely channel POS and inventory data not only stunts growth, but also increases issues with resource allocation, cash flow and production.
Given manufacturers’ growing dependence on indirect sales funnels, traditional channel data management (CDM) simply cannot support the complexity and quantity of information that comes in and out of the channel.
Using manual processes to cleanse channel POS all but ensures errors in the reconciliation of data. On the other hand, supply chain producers that demand channel partners to provide complete POS and inventory reporting is an unrealistic ultimatum that all but ensures inaccuracies.
The best solution for complete and timely channel POS information is via a centralized, automated channel POS system that offers real-time visibility into transactions and inventory levels.
Following are 3 of the most basic, but important areas in which an improved CDM solution helps channel-driven producers improve their bottom line:
1.) Inventory-level accuracy leads to money well-spent
Estimation into output of inventory is a flawed, and potentially dangerous mechanism for production scheduling and meeting customer demand.
Because it’s common for manufacturers to rely on approximating inventory levels months in advance, they cannot guarantee partners supply will be available.
When partners don’t have confidence in suppliers’ ability to satisfy customer requests, they tend to look elsewhere at companies that do.
To counter this occurrence, manufacturers frequently overproduce, which costs thousands and millions of dollars to be lost due to stale inventory and price protection reimbursements.
When manufacturers have real-time insight into inventory and the performance of specific products, they can safeguard availability to partners consistently.
Access to this data improves production scheduling, as manufacturers don’t have to “cushion” their supply levels.
As a result, companies can allocate resources into ‘more pressing’ areas of business thanks to added funds and manpower available.
2.) Reduced potential of lost revenue and opportunities
Manufacturers are required to make critical business decisions regarding output forecasting. However, the flow of incomplete and inaccurate channel data constitutes for a catalog of financial losses and missed opportunities.
As with all manual processes, there are inevitable break downs and/or missing elements in crucial areas that directly impact the financial status of your company.
These complications effect, but are limited to:
- Settling incentive disputes timely and accurately
- Time to close books
- Stock-outs and overstocks
- Turnaround time on partner reimbursements
- Missed opportunities on potential ‘game changing’ deals
- The integrity of channel partners to submit accurate claims
- Accurate validation of reimbursement claims, which lead to overpaid and duplicate discounts
- False channel POS data leads to overproduction of poor performing products
- Partner satisfaction and mind share due to complexity of doing business with supplier
Managing disparate channel partner data feeds on Excel spreadsheets and other manual processes puts a company in a vulnerable position that ultimately effects its bottom line.
With a centralized platform for analyzing channel POS data, channel-driven companies can be more adept to changing market condition (e.g., demand spikes, competitor pricing) while maintaining partners’ confidence and influence.
3.) Improved pipeline visibility provides a clearer understanding into the marketplace
Incomplete channel POS and inventory data (e.g., only detailing the quantity of units sold over a specific timeframe) fails to provide the information needed to make sound business decisions.
or example, intelligent channel data collection that provides real-time insight into:
- How fast certain products are being sold
- Which products are being sold
- What price end-customers are willing to pay for specific products
Comprehensive understanding into these areas allows channel producers to better predict/prepare spikes in demand, as well as realize which products to focus more on or improve.
Timely data into channel POS helps manufacturers understand marketplace reaction to certain products; this imperative information spotlights where adjustments need to be made internally and externally.
Ultimately, in today’s convoluted and competitive channel industry, manufacturers need data that’s accurate, timely, comprehensive, standardized and centralized.
Robust channel data management solution providers, such as Computer Market Research, empower companies to make better decisions, save time, capitalize on opportunities, win more deals and establish strong, strategic and long-lasting relationships with channel partners. For a limited time, we are offering our channel POS for free with a 90 day limited trial.
