Channel Information

Systems (CIS)
CIS
• The purpose of a CIS is to collect and analyze data about the
operations of marketing channels in order to assess performance and
take timely corrective action to continuously improve performance.
• CIS are of primary use to the sales managers and through their
analysis to the company as a whole.
• The types of information needed from the distribution channels could
be all operations data (facts and figures), assumptions, anticipated
outcomes (forecasts) relating to channel system.
The advantages of having information are
obvious, as described below:
• Market planning
• Tapping market opportunities
• Alert marketers against threats
• Spot trends
• Develop action plans
• Aware of consumer needs
The advantages of IS in channels are as
follows:
• Drastically changed the way in which information is collected, stored and
transmitted between channel members.
• Help channel members integrate all their functions
• They also have an influence on the channel networks which can be
shortened
• Streamlines operations and improves channel flow
• Changes the order in which different channel operations are performed
• Influences the physical distribution of the products
• Improve channel relationships- the balance of power between channel
partners, reduce chances of conflict, better cooperation and coordination
4 steps involved in data collection and
management

Arranging,
Monthly sales of
Collection modifying and
Processing Keep info intact
Storage Use
each territory
interpreting data
Development of a CIS

Organize info in a Decide who will

Decide what info is manner suitable use the info when
required for interpretation and for what
and action purpose
A Good CIS
• Be an integrated system to handle all regular data
• Be a useful decision support system
• Reflect the style of the marketing organization
• Have to be user-friendly and user-oriented
• Be convincing to the providers of the information as to why they should
keep providing accurate information on time
• Be cost-effective
• No need for verification from other sources
• Be fast and totally reliable
List of some CIS in wide use
• Electronic data interchange (EDI)
• Quick response system (QRS)
• Transaction-based information system (TBIS)
• Continuous replenishment program (CRP)
• Point of sales systems (POS)
• Efficient consumer response system (ECR)
List of the elements of information that will interest
sales managers dealing with mkt channels
• Market information
• Competition tracking
• Distributor profiles and database
• Primary sales
• Secondary sales
• Pricing trends
• Promotions history
• Promotions evaluation
• Distributor ROI
• Retailer cards
• Statutory info and reporting
• Distributor’s payment record
Market information
Purpose To plan day-to-day activities
Source Trade, channel partners and salespeople
Action possible Change emphasis on products and packs to be promoted, change pricing and so
on
Impact on service Timely action to protect consumer franchise
Channel Performance Evaluation Criteria
Criteria for Evaluation Popular Performance Measure
Sales target achievement Primary sales
Secondary sales (for FMCG)
Achievement of sales target
Sales growth by period
Market share achieved
Inventory management Average level of inventory maintained
Inventory turnover (inventory to sales ratio)
Inventory of slow moving packs
Storage quality
Selling resources Number of salespeople
Target achievement of each salesperson
Market coverage Calls per day
Productive calls per day
Extension of credit
Support to new product launches and promotions
Back office support Trained manpower
Reports, records
Calculation of Performance Scores
Criteria Weightage (%) (X) Criteria Score- 1 to 10 (Y) Wtd Score (X*Y)

Sales target achievement 50 7 3.50

Inventory management 15 8 1.20

Selling resources 15 7 1.05

Market coverage 10 8 0.80

Back office support 10 6 0.60

Overall performance
rating: 7.15
Overall Performance Score
Channel Overall Performance Score Ranking
Member
A 7.39 1
B 7.20 2
C 7.15 3
D 6.89 4
E 6.56 5
F 5.60 6
SAP-Sales and Distribution Module
• Helps manage the customer relations from raising a quotation to sales
order, billing and shipping of a product or service.
• Handles all the process from a sales order to delivery
• Help execute business process in selling, billing and shipping of
products
• Handles all the activities of sales and distribution
• This module integrates in SAP with the modules of materials
management and SAP production planning
S&D module
• Components: master customer data, support to sales, sales
information management, sales, managing contracts with key
accounts, credit management, foreign trade, billing and
transportation.
• S&D module takes care of specific tasks:

Enquiries Quotation Sales order MRP Production Invoicing Delivery

Thank You