Despite the tremendous advances in technology in recent years, some aspects of complex supply chains remain difficult to monitor to the extent that many businesses would like. One particularly challenging area has been understanding products that are sold via indirect channels.
Channel data management (CDM) solutions for supply chains are one way to help mitigate this problem. According to estimates, around $1.5 trillion in inventory is sitting in the channel at any particular moment. While a business might get a monthly report from its channel partners outlining the amount of inventory there is and who has bought it, this data is not always through or completely accurate. This can lead businesses to miss very valuable opportunities. Here are three areas in which real-time CDM can help producers generate value.
CDM improvements can help firms slash the amount of inventory that distributors, retailers and resellers hold. It eliminates the need to deliver stock months in advance of demand and enables them to ensure the availability of products without requiring such a big cushion. In fact, this data can help reduce the amount of inventory that producers ship to their partners by as much as one fifth, freeing up resources and money to invest in other efforts.
A Drop in Stock-Outs
Stock-outs are impossible to eliminate entirely, but traditional inventory management processes that use manual forms are generally a lot more prone to error. Real-time CDM enables firms to reduce stock-outs and therefore boost their revenue thanks to the more up-to-date and accurate information it provides.
Improved Product Planning and Customer Visibility
Timely data that comes directly from channel partners can paint a highly accurate picture of customers so that firms know which products people buy, how much they pay for them, and how fast they sell. Conventional reporting typically shows the number of products sold over a certain period of time, which can obscure the finer points that could end up making a big difference. Producers need this visibility so they can design and plan products with the customers’ needs in mind.
This blog post was based off of an article from Data Informed. View the original here.