LECTURE 6

CHANNEL INFORMATION
SYSTEMS

Distribution Management
M Wahidul Islam
Spring 2015
 Planning,
Forecasting &
Budgeting

Warehousing Sales Force

and Logistics Management

Elements of
Distribution
Management
Channel
Product Pricing
Information
and Promotion
Systems

Distribution Product
Channels Visibility
WHAT IS CHANNEL INFORMATION SYSTEMS?

 The orderly flow of pertinent operational data, both

internally and between channel members, for use as the
basis for decision making
 Information about the channel members, channel flow of
goods / services, transactions etc. all are Channel
Information
 The purpose is to collect and analyze data about the
operations of channels
 In order to assess the performance

 Mainly useful for Sales Managers

HOW IS CHANNEL INFORMATION SYSTEMS
HELPFUL?

 Helps identify favorable / unfavorable trends

 Helps to identify areas of opportunities

 Helps identify competition threat

 Helps collect consumer feedback

STAGES OF CIS
 Collection of Data
 What type of data?
Collection of Data

 Processing
 Arranging
Processing
 Modifying
 Interpreting

Storage
 Storage

 Use Use
 Application in decision making
DEVELOPING A CIS

Decide what information is required

Organize information in a manner suitable for

interpretation and action

Decide who will use the information when and for what
purpose
ELEMENTS OF A CIS
 Market information
 Competition tracking

 Distributor profiles and database

 Primary sales

 Secondary sales

 Pricing trends

 Promotions history

 Promotions evaluation

 Freight and storage costs – primary and secondary

 Inventory control

 History of orders

 Distribution cost
CHANNEL PERFORMANCE EVALUATION CRITERIA
• Primary sales
Sales Target • Secondary sales
• Achievement of sales target
Achievement • Sales growth by period
• Market share

• Average level of inventory

Inventory • Inventory turnover

Management • Storage quality

• Inventory of slow moving packs

Selling • Number of sales people

Resources • Target achievement by each sales people

• Calls per day

Market • Productive calls per day
• Extension or credit
Coverage • Support to new product launches
• Support to launches
REFERENCES
 Chapter 14 – Channel Information Systems
 Havaldar K. and Cavale V. M. (2011) Sales and Distribution
Management – Text and Cases (2nd Edition) Delhi: Tata
McGraw-Hill Education Private Limited
END