It has a huge impact on product performance for both manufacturers and retailers. Instead, focus should be placed on demand management. But obtaining timely data is only the first step. For example, inventory numbers may indicate that a retailer ordered large quantities of certain products. However, it does not indicate whether the products were delivered on time or moved from the distribution center to the store to the shelves.
Most companies lack the personnel and technology infrastructure to gather and analyze the data.
As a result, consumer products manufacturers and retailers are turning to outside firms to help them bridge the gap between the responsibilities of the in-house sales staff and merchandisers. For example, the majority of the available in-store service providers can visit stores and report back on what a typical consumer would find when looking for a particular product. However, this information is fairly superficial. A more complete picture of how well retailers and manufacturers are working together to execute in-store merchandising strategies requires at its foundation a dedicated resource that is focused at the store level. Descriptive charts and graphs adjust automatically to include the latest store data, pinpointing specific trouble areas that can then be addressed immediately.