Automated Channel POS System Provides Real-Time, On-Demand Information from your Channel Partners.
Sheila O’Neil is the President and Founder of SM O’Neil Consultants. In this Channel Expert Q&A, O’Neil offers her expertise in Automated Channel POS Systems and their influence on creating profitable distribution channels.
Importance of an Automated Channel POS System
CMR:
What makes POS data difficult to track in the channel?
O’Neil:
It’s relatively simple for the manufacturer to quickly obtain the data they need for analytics when POS data is directly reported from retailer to manufacturer. However, with manufacturers that sell through the distribution channel, things become more complicated. The complication arises because the POS data is moving through multiple partners that may translate data in unique fashions. Therefore, the more layers, the more difficult.
CMR:
What importance does POS data have on channel sales as a whole?
O’Neil:
Proper POS management is very important to optimizing channel sales. POS management is at the core of tracking partner performance, as well as incentive tracking, registration deals, and territory performance.
CMR:
How can proper POS management improve channel sales?
O’Neil:
Proper POS management can help improve sales with the consolidation of distribution POS data. It’s important to note that each distributor has various rules and processes for communicating POS data. The ability to report cumulative data for any period of time is crucial to identifying sales opportunities.
CMR:
What are some channel programs that might rely on POS data?
O’Neil:
Certainly any incentive programs such as volume incentive rebates and Co-op advertising. Also, product launches, inventory tracking, price protection, and deal registration, all rely on POS data.
CMR:
Where do manufacturers have trouble trying to manage POS data?
O’Neil:
Most of the headache comes from distribution reporting. Each distributor has its own system in place for segmenting customer data. Therefore, trying to consolidate data by reseller can’t be done manually.
Therefore, Automated Channel POS System has become a best practice for managing POS data. That’s because automated systems can take all the variations of a reseller account names and consolidate it into a single account name.
CMR:
Do distributors have trouble collecting POS data?
O’Neil:
Distributors have similar problems to their manufacturers in that they may have multiple reseller accounts that need to be tied to one account. Smaller distributors also have a hard time being able to tie their information to what the manufacturers are looking for.
CMR:
In the last 5 years, Have you noticed any changes with how POS data is handled in distribution channels?
O’Neil:
POS data has become more relevant to businesses than ever as they must rely more on business analytics to determine the effectiveness of their partner relationships. Budgets are continually shrinking and manufacturers need to know where their investments are paying off. Therefore, it’s becoming more and more important to measure ROI. Without any reliable POS data, it’s tough to do this.
CMR:
Any predictions on where POS reporting is headed in the near future? How might it change?
O’Neil:
POS data reporting is moving towards automated channel POS systems and more linking to multiple data sources for stronger business intelligence and analytics. I also predict there will be a stronger tie to the end-user and vertical sales tracking. Enhancements to the automated channel POS system will make the Channel stronger. In fact, automation will help sales become more accurately tied to channel revenues.
CMR:
How is your consultancy helping manufacturers with POS Management?
O’Neil:
We help in developing a plan and a strategy for channel growth. This includes making sure that manufacturers have a strong method in place for tracking their sales internally and through distribution channels. When my clients have the analytics they need, I can advise them on where to direct their effort for sales growth.
About Sheila O’Neil
Sheila O’Neil is a Channel Sales Executive credited with combining management, sales, marketing, and business development expertise to deliver substantial revenue growth in highly competitive business markets.
Sheila’s previous roles include the position, Vice President of Channel Sales with IT hardware manufacturers, with responsibility for overseeing numerous channel relationships with solution providers, direct response partners and the distributor channel.
In 2008, O’Neil received the ARC Channel Executive of the Year award. The editors of The Channel Company have announced O’Neil as one of the top women in the technology integration business since 2006.