How Suppliers View Channel Data

Hey, wholesale distribution executives! Do you want to understand how your suppliers feel about data sharing by their channel? Or perhaps figure out how you can profit from the demand-driven channels trend from Chapter Two of Facing the Forces of Change®: Lead the Way in the Supply Chain?

If so, then check out my new research study, which you can download for free after registering with InfoNow, the report’s sponsor and a leading channel data management (CDM) company. Here’s the link:

A Cross Industry Study of Channel Data Automation

In case you didn’t know, Channel Data Management (CDM) describes the processes by which manufacturers collect point-of-sale (POS) transaction and inventory information from their distribution network, cleanse and standardize the data, and then use the results to make better decisions.

I looked at the channel data management practices of 124 technology, manufacturing and pharmaceutical companies that sell through indirect channels such as wholesale distribution. The study provides a complimentary perspective to Facing the Forces of Change® regarding data sharing between wholesaler-distributors and their suppliers.

According to the manufacturing executives in the study, a major challenge associated with channel data comes from their company’s ability to gather and use the information effectively. However, the frequency of these problems varies significantly based on the level of automation used by a manufacturer for gathering and reporting data from wholesalers, retailers, and other resellers.

For example, more automated processes for handling distribution channel data are closely associated with fewer problems in the quality of channel data reporting, such as:

• Less frequent discrepancies between a manufacturer’s internal sales data and the data collected from their distributors.
• Less time spent by a manufacturer validating or auditing sales data submitted by their distributors.

So, just as customer relationship management changed the landscape for companies that sell direct, I expect CDM will one day revolutionize how a manufacturer manages sales through indirect channel partners such as wholesaler-distributors.

Here’s a strategic question for wholesale distribution executives: How can you use knowledge of CDM to build a new service for your suppliers or identify a new compensation model for your data?