POS data provides a strategic advantage for many consumer goods companies. In the past, many companies used their shipment or order information to estimate how much they were selling. They may have just purchased data from third party data providers along with the reports and thought that if it helped category teams, that’s all that mattered.
Fortunately, this is no longer the case, and we know that multiple teams within an organization can be supported by this kind of data.
Today it is critical to know when products are selling, which products are selling and where they are selling. Any company hoping to achieve a competitive advantage must be using POS to its fullest extent. Over the next few years, any company hoping to sustain their competitive advantage will have to leverage POS data. When possible, you should use daily level POS for timely alerts. This ability is quickly becoming a necessity where it was once considered a luxury.
Why is POS data so important? Because it gives precise information on your consumer’s actions. It helps improve retailer relationships as well as maximize internal business efficiencies.
It improves retailer relationships by providing you with the ammunition to help them understand their sales better and quickly pin-point areas in need of attention. POS is actual scan data. It’s not just summarized data. When actual scan data is available it should be used in addition to market data from syndicated data providers like Nielsen, IRI and NPD.
Understanding and streamlining the POS integration and harmonization process also improves internal business efficiencies. No longer do companies have to worry about going to dozens of different sources to create reports. Now they can access a single, integrated area of information. They are freed up to actually analyze data rather than spend their day gathering data and pulling together the same reports over and over. In addition, it makes you smarter about your business. An integrated solution provides you with faster, more accurate access to information. It can be integrated to help you better manage your supply chain, measure effectiveness of promotions, determine effectiveness of sales territories, identify exceptions quickly, manages out of stocks, forecast more accurately, etc.
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