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Advanced sales tools, for example a CRM that has built-in geo-mapping and location intelligence, can do things like help salespeople and managers better satisfy customer’s needs and allow them to get a ‘30,000 foot view’ of their market. But the list of capabilities they have does not stop there. Advanced CRM and other sales reporting tools can also help manufacturers optimize their distribution networks.

 

OEM’s (original equipment manufacturers) today typically do not sell their products directly to their end users. Instead, most OEM’s partner with independent distributors, who buy manufactured goods from them in bulk then sell them piecemeal to dealers. Independent distributors save manufacturers from having to spend time and money building strong relationships with multiple dealers to sell their product. In doing so, they take over other headaches such as territory management as well.

 

By conducting in-depth analysis of their sales (to dealers and end users) in aggregate, which can be done using a CRM database in combination with a product registration database, OEM’s can identify sell-in and sell-through patterns that can help them streamline costly activities they and their distributors engage in, such as transportation and warehousing.

 

 

For instance, by determining the average demand as well as the ‘seasonality’ for their products – what months they sell well in and which ones they do not – OEM’s and their distributors can reduce the likelihood that a restocking order will be too large or too small for a dealer. Too large, and the dealer’s stockroom may become overstocked. Too small, and the dealer may miss out on selling more product.

 

Another way sales data visualization and sales data graphs can be used to optimize distribution is demand forecasting for products at a new dealer’s location. Let’s say a new dealer gets added to a manufacturer’s network. In the beginning, they might have trouble figuring out the best selection and number of products to order, as well as the frequency with which to order or other marketing insights. However, granted that they have some means of conducting complex analysis at their disposal such as an advanced CRM, the manufacturer and/or distributor can come up with a product mix and ordering schedule that will work in the dealer’s favor, by comparing the market that new dealer will serve to markets that other dealers in their network serve or have served in the past.

 

Looking at sales, demographics analysis, and other information for certain areas is called location intelligence (LI). In addition to forecasting demand for new dealers, LI or geo-mapping can also be used to determine where sales onboarding staff should be looking for new dealers to be added to a dealer network. Common sense would have most managers thinking that opening an additional dealer in close proximity to another one would not be strategically viable, as the two dealers would naturally have to compete for business. However, manufacturers and distributors sometimes find that having multiple dealers in a relatively small area leads to good results. LI allows manufacturers and distributors to see whether distance from another dealer plays a role in driving or impeding a dealer’s success.

 

Having the right tools makes it easier to find solutions to difficult problems. When it comes to solving dealer network problems, a sophisticated CRM can help save the day.