Coresight Research Study Quantifies Value of Supply Chain Collaboration
Increase topline sales by 4% by sharing data with trading partners
Retailers and suppliers benefit from supply chain collaboration through reduced out-of-stocks and increased shopper engagement
Who’s responsible for monitoring inventory levels and delivering new ideas to drive sales?
The answer can be informed suppliers with access to sales and inventory data. Increased inventory efficiency—from both inventory optimization and the reduction of out-of-stocks—can have a direct and measurable impact on overall revenue.
How can supply chain collaboration improve allocation?
With timely sales data, the vendor can see stores or regions that are getting low on inventory or are almost out-of-stock. They can recommend in-season stock shifts that benefit everyone. In one case, a vendor used shared data to identify an issue and recommend that their retail partner pull slow moving stock from some stores and shift it to southern stores, where the product was selling well. Reallocation led to a 30% increase in sell-through.
How do you know when assortments should change?
Sales data often shows new opportunities. Earlier this year, a vendor identified an item not currently in the assortment of a retailer that was a top performer for other retailers. Adding the item into the assortment proved successful and lifted total category sales.
Why don’t retailer portals provide sales insights?
Suppliers find third-party analytics solutions offer sales reports where the data from every retail customer is standardized, complete and ready to go. One retailer reported that within one year of transitioning to an external data provider, vendors that represent 85% of its sales are currently receiving and actively using the data.
“The merchant conversation is different with retailers that share more data. A well-prepared account manager could take a lot of work off the buyer’s plate.”
Leveraging data is critically important for retailers.
As technology continues to evolve, retailers are continually advancing their use of data and analytics to improve all aspects of their business.
Download our research report to learn some of the most common use cases for sharing data.
Download our research report to learn about the benefits of sharing data.
