Put EDI 852 product activity data to work for you
Distributors that supply to retailers share their customers’ stress as the retail industry reels through some of the most dramatic change in decades:
- Internet sales continue to put pressure on price and minimize differentiation between retailers.
- Retail margins were down to an average of 9% in 2016 from 10.5% in 2012.*
- Analysts suggest 8,600 brick and mortar stores will be closed in 2017.
- Change is occurring faster than ever before.
As a supplier, how do you optimize your product position with your retail customers?
Retailers have squeezed excess and waste out of their organizations and supply chains. Along the way they have asked suppliers to share costs via EDI. And now retailers are seeking suppliers who can collaborate with them to optimize more focused products in their categories, and offer better placement to win consumer fulfillment.
Years ago only the largest retailers and suppliers could afford the technology to evaluate retail data and collaborate in the supply chain.
Today, technology has leveled the playing field across this marketplace bringing changes that are good news for suppliers willing to harness the advantage in POS Data Analytics.
Can you answer these questions?
- How are my product sales trending week-to-week as compared to last year?
- How are my products performing across multiple retail trading partners in the same geographic area?
- Did the end cap that we negotiated really improve our sales?
- Which items provide the best gross profit?
- How do I obtain my trading partner’s collaborative forecast and allocate it to the warehouses that will be shipping the products?
- Is the collaborative forecast that I receive really a good indication to what my sales will be?
- Which stores are understocked and overstocked, and how can I address the situation so both my company and our trading partner won’t lose sales?
- What is the forecast by trading partner over the next 90 to 120 days, and do I have enough product in the pipeline to fill demand?
If you are not using POS data analysis to refine your inventory forecasting and replenishment efforts with your best retail customers, it’s not too late. Consider POS Data Analytics from Absolute Value, a Lanham Company.
It’s fast and easy to get started, and because it is offered as a service in the cloud, you won’t add more strain to your ERP system’s processing power, or need extensive IT services to implement it.