Now that the dust has settled, press releases have been issued and frantic calls have been made seeking information, the question becomes, what does the decision by IDEA and Trade Service mean to everyday operations and the industry “vision” of an owned data warehouse?
From our viewpoint, the IDEA press release appeared a little inocuous, not revealing much of how they were going to recapture the data that Trade Service was providing. We’d presume that there are a lot of questions in this area. The first is “what do I do for my data ‘today’ since I assume I can’t get non-IDEA data after July 20?”. The second question is, “What is the long term plan?”
Additionally, if we recall correctly (and we are 10 years older), the agreement enabled IDEA to also use Trade Service’s commodity codes and had something to do with downloading using the PFMS format. Presumably usage of those expire at the same time. For distributors who use them, what does this mean?
We empathize with the IDEA BOD which recently assumed their roles and for Bob Gaylord who is probably still learning the industry and its various nuances let alone challenges that the IDW has faced.
A couple of more questions:
- Was this the answer to An IDEA with Vision?
- Is this representative of A Distributor’s Perspective?
If you are a distributor solely getting your data from IDEA, how do you continue, at least in the short-run, to get your product updates? If you are a Trade Service customer, this is a non-event and possibly an opportunity given that the press release referenced new initiatives/offerings. If you subscribed to both, do you need to pay for both? Can you envision in the future needing both (unless you are a Rockwell distributor)?
For manufacturers, for the most part this is a non-event as, we believe, only Rockwell told its distributors that the IDW was their sole source (but then again, Rockwell doesn’t sell to even 100 customers … Trade Service says it has 1000 customers on its system – manufacturers with a broad-based distribution strategy need Trade Service to reach their customers with product information.)
The end result … this will be a continuing saga to see how IDEA responds (and if they have the financial resources to replicate Trade Service) or if manufacturers are willing to invest in populating data in a down economy (is the payback in the data component or enhancing electronic connectivity via EDI). Lot’s of questions, unfortunately few answers at this time.
Your thoughts?
12 Comments
Hos is the severing of the IDEA/Trade Service relationship a non-event for manufacturers? In the confusion, will manufacturers utilize and pay for both services or will one service win out over the other? If the latter, what are some of the short- and long-term challenges for manufacturers to ensure correct and timley pricing information for distributor trading partners?
Someone at IDEA is not getting good data/advice. Who ever neogiated way the comm.codes from TSC has put us in a world of hurt. I suspect we’ll hear more from other people in the days.
You can’t get a 8 digit code into the same that was reserved for a commidity code. The amount of work involved for our company is somewhere between $2oo-$350,000 dollars PLUS we have to rebuilf all of our pricing.
Bob, you got really bad advice if you think that it is an easy task to convert from commidity codes to the 8 digit code.
We have had commidity codes embedded in our system for years.
Who ever neogiated this deal with TSC, does not know how a distributor actually runs their businesses.Our easy solution is to stay with TSC. Thanks youvery much for creating more work for the distributor. It almost makes me think that Tom Naber had a hand in the neogiations with TSC.
Didn’t he do something last year that was just as bone headed?
DS in the Southeast
As I understand it, manufacturers don’t pay to be included in TS’s database. Perhaps that’s why their coverage is far better than IDEAs.
I’ve been a longtime TS user but became an IDEA customer due to political pressure. Now after paying for both services for several years, I need to finally do the right thing and focus on my business by strictly aligning myself only with TS. I am now very happy I never left TS because without their commodity codes my business is screwed.
Sounds like another screw up and maybe the last nail in Tom N’s coffin.
Sounds like we have been dupped by IDEA!!! I was never told they were at risk of losing Trade Service’s. I can’t afford the political BS and the uncertainty of the data. I called Trade this morning and resubscribed to PMFS. It was easy and I now have nothing to worry about.
Sorry IDEA but I have a business to run!
Hey Bob you seem like a nice guy caught up in a bad situation by some real bad advice, but as they say in Atlantic City – COLOR ME OUT – I’M OUTTA HERE.
Idea can put what ever type of spin they want on the situation. For the last several years their sales pitch was not be real.
The fact of the matter is as a manufacturer I’ve NEVER paid TSC money to put my data in their data base. And on top of that they have helped me by pointing out where we may not have been correct in the prices. However it has been very costly to put data in IDEA and the DAC does nothing for me. Other manufacturers go through the DAC and then let their data sit there. No one should be lured into thinking that the DAC is like the Good House Keeping seal of approval. It is not because, I can tell that my fellow competitor don’t keep their pricing up to date.
I hope that TSC follows through with their contractor link up program to my distributors.
In the south manufacturer
The IDEA datar has always been a challenge. Nice people.We are not adding people to IT because NAED says we should.
We keep feeding our business machine with TSC datar. They have nice people also.
With what is ahppening in our market, we are more interested in staying in business than playing the politics that NAED drums up.
As Al Davis says…just win baby…and that’s what we’re doing.
Don’t even get me started
A Regional distributor speaks from the South/mid Atlantic….
We will not make the change to IDEA…NAED is involved. Need I say more. They are about are about adding fees and BS to the channel.
Sing alongs….give me a break.
TSC is a class act for our money.
The national distributor is right.Don’t even get me started either. There has been one story after another from the potential JV to now Idea doesn’t seem to be able to cover all the data we need.
Come to me when you cut a deal with Trade.
8+ branch wholesaler in Texas
This IDEA concept is a feel good thing.Time and money have been spendt.
Unfortunately it became a NAED political football before this current BOD.
So one of the obvious questions is, since Trade data was been running through the IDX VAN for a longtime, why hasn’t IDEA cut a deal to let Trade Service sell their VAN services?
Ot would it be better to let Activant (VAN) and Trade (data) team up to replace IDEA?
Data Police have spoken: If Idea thinks that because they consider themselves the “data police”, that I am going to change my numbering system to fit their offering….they would be wrong.
And by the way their VAN price is not all that great.
We are perfectly happy with the way we do business….just wish SPA’s would go away and margins would increase.
From the Four corners area.
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