Tag Archives: POS Data

Suppliers Gain From Understanding POS Data

Cloud computing and Big Data technologies have created new options for retailers to get their suppliers involved sharing inventory and sales information (POS or Point-Of-Sale) with their vendors. Everyone can get on the same page regarding the business initiative and  bring benefits to both the retailer and to its vendors.
The business case for retailer/supplier collaboration is simple: Cost savings and increased Revenue

The correct retail intelligence platform will save money on infrastructure costs and deliver operating improvements. Operations will see improvements from: reducing out of stocks and from increasing inventory turns.

Yes, all systems will require some degree of customization. There will always be unique product offerings or other quirks that must be handled. No two companies are identical, but the secret is to have software that accommodates customization. Downstream data sharing between retailers and their suppliers continues to grow, and along with it unique approaches and executions.

Sharing POS sales data sees both suppliers and retailers who have committed realizing ROI benefits from controlling out of stocks, managing inventory, forecasting and in the replenishment process. Now the data sharing is expanding outside the supply chain into sales and marketing. This may be because of more involvement by higher level executives, meaning the enterprise and the corporate strategists are becoming more comfortable with data sharing.

Sharing POS Data Can Deliver Benefits To Retailers

Software analytics let retailers track usage, monitor changes, determine reorders and calculate when and how much to reorder, and check inventory levels on an item-by-item basis. Control of inventory begins right at the cash register: the point-of-sale (POS). Now, inventory records are always up-to-date. This allows better decisions about ordering and merchandising.

 

The initial reaction was to turn this data into purchase orders for the suppliers (the Spokes). What about instead passing along the POS data to the suppliers and in fact, let them write their own purchase order. The Spoke knows their own products better than anyone else.

POS data can deliver many benefits

  • See how well all the items on your shelves sell, and adjust purchasing levels.
  • Sales history can adjust for seasonal purchasing trends.
  • Provide audit trails to trace any problems.
  • Better control through reporting features.

Vendor Managed Inventory (VMI) can include situations in which the retailer has given their vendor access to their point-of-sale (POS) system data. This can result in lower costs when inventory management is outsourced; minimize stockouts; better forecasting by leaving it to the experts.