Distribution Channels are pathways of strategic advantage where products, information and finance flow from manufacturers to consumers. However, those channels are made of complex systems of independent businesses whose data needs to be aligned to assist companies to fulfill and create consumer demand. The great challenge is to colect and analyze market and channel performance data in uniform formats to facilitate aggregation.
KMS Distribution Network Analytics provides the platform, views, alerts and trends needed to facilitate this alignment.
Manufacturers lack visibility into the distributor network. Furthermore, each agency has data coming in that is in a different format – often unstructured – and being stored in different, incompatible systems. As a result manufacturers not only don’t get access to vital data but even if they did, consolidation takes a lot of time and resources.
Distributors do send invoices and sales data to manufacturers but these do not contain detailed insights into secondary sales data, like consumer preferences, price sensitivity, product performance vis a vis competition, distributor inventory holding patterns etc. Manufacturers also don’t know why one distributor performs better than another. Are they not selling because they don’t have enough inventory or because they are selling competitor products?
Lastly, every distributor uses a different ERP or inventory / financial system. It therefore takes manufacturers time and effort to consolidate data – which when available may be obsolete for decision-making.
Other areas of concern are, most notably, anticipating future requirements of distributors, analyzing inventory versus forecasted sales, understanding market position versus competitors and collection of receivables. Inability to predict demand for their products from distributors, causes issues in Manufacturer’s own production planning. Manufacturers have to invest in marketing efforts but they cannot measure the ROI of these investments..
Wholesale Distribution-Based Analytics Solution
KMS Distribution Network Analytics enables manufacturers to consolidate and analyze primary and secondary sales data from different distributors in order to gain insights and drive revenue.
Areas where Business Intelligence assists organizations:
Assessment of Channel Organization & Network Efficiency
Revenue/Volume/Margin/Profitability by multiple dimensions
Inventory Analysis and Forecasting
Market Analytics for Share & Positioning
Market Pricing Analytics
KMS provides standard based options, understanding of the business, experience based on over 500 projects, visual experts and a pool of talent. KMS helps its clients access the right data at the right time, provides the ability to get a clearer look into the client data to make better business decisions and enables firms to become more agile by responding faster to opportunities and crisis.
Implementation and Methodology
Understand and Analyze sufficiency of data for the following
- Channel Types, Levels, Density by geography and Variety of products sold
- Channel organization and frequency of Sales data flows
- Channel Revenue/ Volume/ Margin/ Marketing Expense & Profitability
- Technology adoption and applications used
- Channel Inventory Data, storage and ordering levels
- Market Analytics to estimate volume & value of market share, distribution coverage, and retail presence.
- Criteria & opportunities for upselling and cross selling
- Pricing Models, discount structures, promotions etc.
Identify your data sources and the technology landscape
- Distributor ERP Data and Access
- EXCEL files
- Returns from Distributors on portals or websites
- POS data
- Other sources of data from unstructured sources like Facebook, Twitter etc.
- Evaluation on the number of data sources and whether you will need a Data Warehouse
- Deciding on the technology platform of the Data Warehouse, and the kind and frequency of aggregation required
Discussions with Business users to identify the KPI’s for each area identified in Step 1
- This step includes presentation of our ready templates, and discussions on how these can be adapted for your use
- Decisions on how the chosen KPI’s will be visualized and displayed
- Responsibility for data harmonization and cleansing
- Frequency of data update and viewing
- The visualization formats for specific data types
- The Additional Reporting requirements
Case study: Wholesale group headquartered in Europe
Case study: Chemical distribution company headquartered in Europe
GARTNER'S ANALYTICS MARKET GUIDE 2017
Knowledge Management Solutions has been featured in Gartner’s Analytics Market Guide 2017 as one of the selected few Business Intelligence and Business Analytics Service Providers Supported in Asia Pacific and Japan
Knowledge Management Solutions
Who we are and What we do? KMS is one of the most experienced implementation specialists of Business Intelligence, Analytics and Big Data solutions in Asia Pacific. In our 13 years of operations we have worked with almost 500 customers and more than 10,000 end users, using our solutions in 20 countries. We have 80% customer retention rate after two years. Headquartered in Singapore, we have an exceptional regional knowledge and presence with offices in Malaysia, Thailand, Indonesia and Hong Kong.