Many distributors end up paying really good money to purchase ERP software systems and either don’t completely install (turn on) all the various features and functions or they have such a terrible time getting their personnel to use all that they paid for and they give up. The result sometimes is that they cause more problems than they had before.
The service is provided by Datalliance….and it is FREE to distributors. Datalliance focuses on specific inventory for specific manufacturers and their distributors. They can’t force product on a distributor. The figures we were quoted recently indicate that a real usage trend is underway. Consider that in 2008, Datalliance was providing service to 30 electrical distributors that represented 280 distributor locations. Now, in 2011 (in 3 years later), they will be providing service to 135 distributors with approximately 1540 locations. Here are some impressive success stories:
Some of the perks we’ve heard about make it almost duhhhhh! So what do you think? Does VMI still scare you?
9 Comments
Anything that can help a distributor focus on increasing margins is huge to us. I for one am really looking forward to seeing for myself this new Margin Optimizer service from Trade. They’ve been doing some great things lately, so hopefully this one will be good too.
Margin…Increased Margins…turns…More Turns and less dead inventory is what our business is all about.
Datalliance with Sq D have increased our turns, and cleaned out all our dead stock. VMI has taken on a new meaning for us.I just hope our competitor down the street doesn’t read this post.
I look forward to using this new Margin Optimizer product. Currently we look each weeks update in Excel and even then there are times we don’t get it right.
Thanks for the alert Allen.
At Siemens we have had tremendous success aligning with our distributors’ goals in optimizing their cash investment in Siemens product by utilizing Datalliance VMI in our inventory collaboration program since 2008.
Working with our distributors to submit their inventory data to Datalliance has shed some light on features of the distributors’ ERP systems they may not have been using previously. We have also found some value add features of the Datalliance system which provide us a better way to communicate with our channel partners on the program, for example what products are stocked at the Siemens distribution center, what is the current product lifecycle management status of a product, and adjusting safety stock (+/-) when we know there is a production/delivery delay or one is ending- thus keeping the customer automatically in the know about important aspects of our products which directly affect their cash investment.
We also work very closely with our distributors to identify non-stock inventory and return this product to Siemens so we can have the opportunity to sell it again in the market place and the distributor’s cash can be reinvested in products that should be kept on the shelf.
One of our great success stories can be found at this link : http://finance.yahoo.com/news/Siemens-Uses-Datalliance-VMI-iw-2737570234.html?x=0&.v=1
As mentioned in this post, the participation of our channel partners in the Siemens inventory collaboration program is free and the goal is not to control the inventory at the distributor, but to work towards common goals.
To quote one of our trusted Datalliance resources: “It’s like having another set of eyes to manage your inventory.”
Pan Pro(VMI)from several years back,as so bad for us. It loaded us up with way too much product and soured us on VMI.
Sq. D offered us some perks and the relationship with Datalliance has been 180 degrees from the Pan Pro era.
We’ll take a look at Margin Optimizer. It make sense to look impact before loading updates.
Having your vendor share in the responsibility of dealing with your slow moving/dead inventory is a great benefit and critical to a distributor’s bottom line. Leff Electric has enjoyed good success in partnering with three of our core vendors through VMI/Datalliance and are looking to add other key vendors as it makes sense.
I would just like to add that our experience with VMI from suppliers using Datalliance has been excellent. The process works to better manage inventory and we’ve gained a closer relationship with those vendors on issues like NPI, returns, etc. And even though it’s the supplier that’s paying the bill, the Datalliance support folks have helped us a lot. We’d like to see more suppliers putting up VMI programs if they are going to do it right like those suppliers have.
As a distributor we have a new, positive outlook regarding VMI. Several years ago we had disapointing experience with a third party VMI solution, but we recently implemented Datalliance VMI with one of our suppliers and have had great results. Sales up, inventory down and fill rates improved. Actively pushing VMI other key suppliers.
Margin Optimizer
The upfront view of our weekly TSC update will give us an opportunity to set margins. My goodness!
Our challenge will be in enforcing the price levels.
You know the thought occurs to me that the value that TSC has and is bringing to the channel has never been fully appreciated. The Margin Optimizer opportunity is really being ‘proactive’ by encouraging distributors to strive for the levels they want. Thanks guys.
We tried to bolt on the epaCube Margin Manager and still haven’t completed it.
We’ll try the other.
Good people.
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