How the manufacturer can support the distributor using data

Anyone working in the manufacturing sector knows that tracking their sales results at the other end of the supply chain can be quite a challenge without the use of data. After the product reaches the hands of the distributor, many suppliers are “in the dark”, with no way to follow the results.

Some of the manufacturer’s primary questions after the merchandise leaves their control are:

Is the business plan being followed?

Did the stores receive the ideal product mix?

Are their sales assertive?

Is the defined pricing policy being respected?

When a new product is launched on the market, or a promotion starts, uncertainties increase followed up by questions such as, “Was the new product well accepted?” In the case of a promotion, did the price cut increase sell-out?

These questions accumulate as the number of distributors increases: the more branched out the distribution network, the greater the challenges in monitoring merchandise and results.

The truth is that a lot can happen throughout the chain: distributors can run into difficulties, market trends can change, competitors can seek those same representatives with tempting proposals.

At these times, the manufacturer needs to do its part, establishing a win-win relationship. After all, the manufacturer needs the distributor and vice versa. In this scenario, it is essential that the manufacturer supports and encourages its distributors, creating a much more solid commercial relationship.

Data usage and the manufacturer

Data is a great ally of the manufacturer and can provide answers to the questions presented above, as well as strengthen relationships with its distributors.

When producing based on market data, the manufacturer becomes more efficient. Internal processes are streamlined, bottlenecks are identified and fixed faster. Production can focus on higher demands. All manufacturing becomes more efficient.

The manufacturer knows this, and the use of data has been its great ally for decades. However, in the past, data was collected and only analyzed later. There were no software and digital tools capable of optimizing the process. In other words, for decisions to be made, there was a long and lagging way to go.

In the current scenario, this cannot happen. The market is extremely volatile, and you must be prepared to deal with immediate changes. This requires an agile and robust data analytics system, which allows the manufacturer to have more control over their products.

Fortunately, the world has evolved, and technology has become a great ally in this area, taking on the role of collecting and processing data. When these processes are automated, managers and teams can leverage this data much more quickly.

Data use and synergy between manufacturer and distributor

When manufacturers use data to their advantage, they generate insights that enable collaboration among business partners, even strengthening consulting work: the distributor’s experience and the data it collects can provide a new perspective on products and new business opportunities.

Likewise, the manufacturer’s sales team should support distributors whenever possible. And this support, of course, becomes more effective when it is based on data that support decision-making and planning for new strategies.

Based on sales and inventory data, the supplier no longer “pushes” its products, as it starts selling strategically, offering the most appropriate items, and providing information that contributes to negotiations between the indirect channel and retailers.

The manufacturer must invest both in training its distributors and its internal team. It is important that they know the products in depth, after all, they are the ones who will offer what is produced to retailers. Sales assertiveness is good for everyone.

By better understanding its product data, the manufacturer can even promote incentive programs to reward the best distributors and encourage the sale of slow-moving goods. This is a creative way to engage business partners, increasing competitiveness and, consequently, sales.

Do you understand the importance of using data?

Data usage helps not only the manufacturer, but the entire supply chain. When the manufacturer performs data analytics and takes advantage of this information, it can equip distributors with the necessary tools so they can close sales more effectively and feel encouraged to do their best.

The manufacturer that invests in technology and data analytics comes out ahead, as it becomes capable of improving its productivity, while strengthening its partnerships and its market share, thanks to a more motivated and qualified team of distributors.

So don’t wait, invest in smart solutions and discover how the use of data can transform your relationship with your distributors and improve your market penetration as well as your results.

These articles can complete this reading

See all contents
What to look for in a VMI Operations Platform
What to look for in a VMI Operations Platform

Price, IT Impact, scaling and a few other important factors to consider when looking for a VMI operations platform. Learn more

4 signs that your supply strategy must change
4 signs that your supply strategy must change

Remember: the success of your sale depends a lot on your supply strategy efficiency. Learn more

Indirect channel management: check out the benefits for manufacturer and distributor
Indirect channel management: check out the benefits for manufacturer and distributor

Indirect channel management: check out the benefits for manufacturer and distributor Learn more

Understanding Demand to Prevent Shrinkage
Understanding Demand to Prevent Shrinkage

Reduce lost revenue by understanding product demand and preventing inventory shrinkage. Learn more

A Proactive Approach to Out-of-Stocks
A Proactive Approach to Out-of-Stocks

Learn how to identify and fix problems related to on shelf availability. Learn more