Wholesale-distributors know the value of analytics, but they are often frustrated with how ineffectively their organizations integrate data into their strategic initiatives, according to the 2014 State of Analytics in Wholesale Distribution.
This report was the first of its kind in the industry and looked at the use of data among wholesale distribution companies. My article on the results, published by IMI’s sister company Modern Distribution Management, provided analysis of distributors’ priorities, challenges and success with data and analytics.
Some of the key findings included:
- Distributors are mostly satisfied with their use of traditional analytics, primarily focused on historical data.
- Some are focused on predictive analytics, such as inventory forecasting or sales and marketing opportunity.
- Very few are analyzing unstructured data, such as online customer behavior, to guide sales, marketing and product management decisions.
From IMI’s perspective, one of the biggest opportunities for distributors lies in market analytics, specifically wallet and market share measurement. Some survey respondents who said they were using these types of analytics said they evaluate competitive market intelligence using third-party data resources (such as IMI’s), as well as tracking competitor news and earnings reports. Others created systems that analyze historical transaction data to build predictive demand models.
IMI recommends using a combination of external market data and internal transaction data for a 360-degree view of your markets.
The full article – the 2014 State of Analytics in Wholesale Distribution– is now available to download free from IMI. Click here to download the article.
