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New Research Highlights Inventory Management Failings

Reading, UK — 25 April, 2017 — Zyme, the market leader in the rapidly growing discipline of channel data management (CDM), today released independent research results which show inventory management is far from under control in consumer electronics businesses. Despite ongoing pressure from stakeholders to reduce operating costs, just one in five (19%) companies interviewed were ‘very confident’ that they have a 360-degree view on inventory at all times; more than half described themselves as ‘not particularly’ or ‘not at all’ confident in this area.

The report, entitled “Channel Data Management Barometer 2017,” collated responses from 166 individuals with responsibility for / visibility of the management of data collected through the channel. The statistics show that the lack of data management, in this area of the business, is having far-reaching business implications. A staggering 80% think they have lost commercial opportunities because of limitations in their ability to collect and analyse channel data whilst 42% admit inventory tolerance alert levels are based on inaccurate data.

A further result of these data collection limitations is that less than half of the companies included in the research are confident they have accurate, real-time data available to them in order to identify new sales opportunities quickly (42%), reallocate marketing funds (43%), accurately measure current demand (45%), drive profitable relationships with channel partners (47%) or provide accurate sales pipeline reports (49%). In fact, 70% went on to say that channel performance understanding was being held back by the accuracy of data. In the UK specifically this figure was 78%, up from 66% in 2015. Furthermore, a shocking 43% confessed they had shared data with the Board that they were not completely confident in.

“This will, I’m sure, kick-start some interesting conversations across departments within the consumer electronics sector,” said Nick Andrews, GM for EMEA and India at Zyme. “Companies expect sales opportunities to open up via channel partners yet fundamental supply and demand issues aren’t being correctly managed. This problem will only be further compounded as partner networks grow.”

The channel is becoming more important to consumer electronics businesses. From a commercial standpoint, the research shows that three-quarters (74%) see indirect sales as a proportion of their total sales increasing over the next two years. This figure stands at 76% for the UK (compared to 55% in 2015) and 71% for the Nordics. With just over half of current sales coming via the channel on average, channel sales look set to become more significant than direct sales for businesses as we approach 2020.

According to Zyme, the flow of accurate data is the very foundation of effective channel management. Enabling businesses to share real-time product information, optimise inventory and avoid inventory discrepancies and write-offs is critical.

“These statistics may strengthen the argument for more investment in CDM but a further recommendation becomes clear – businesses also need to ramp up the strategic credibility of the function,” Andrews concluded.

About the Research
166 respondents in large consumer electronics companies with responsibility for / visibility of the management of data collected through the channel completed an interview in February / March 2017. 86 interviews were conducted in the UK, 80 in the Nordics. All businesses had 30%+ sales through the channel to qualify and had a minimum turnover of £80 million. Research was conducted by Insight Avenue, an independent market research consultancy based in the UK.

About Zyme
Zyme provides the leading channel data management (CDM) cloud platform, delivering critical downstream visibility for global companies that leverage distributors, resellers, retailers and e-tailers to sell their products. Zyme’s flexible, real-time data platform powers the New Smart Channel℠, a proven approach to acquiring actionable knowledge that enterprises need to accelerate partner sales and optimize marketing ROI. With a channel directory of more than 1.5 million partners, Zyme processes more than one billion transactions annually across more than 150 countries, providing decision-grade intelligence to optimize business processes like sales execution, inventory management, partner rebates and incentives, marketing and financial compliance.

Pre-built integrations with Salesforce and other innovative cloud solution providers help Zyme’s industry-leading customers, including Amazon, Dell, Fujitsu, GE, Microsoft, Plantronics, Seagate, Symantec, VMware and Xerox use channel intelligence to solve core business problems. Headquartered in Redwood Shores, CA, Zyme has offices in India, Texas, China and the UK. For more information, visit

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