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In
a recent conversation with
a well known CPG vendor it
became very clear vendors
are still confused by data
quality when it comes to
EDI 852. Simply put vendors
are struggling with the known
and unknown data quality
issues that exist with the
data retailers send out via
EDI 852. Specifically vendors
are increasingly aware that
on-hand inventory levels
reported in EDI 852 is often
suspect at best.
This vendor
asked a very pointed question; "Why
can't retailers get this
right, and more importantly
how do they expect us to
make decisions on bogus data?" This
is a serious challenge and
one that needs to be addressed
by retailers. If they expect
vendors to monitor in-stock
and make accurate decisions
the data quality must improve.
Fortunately there are strategies
to improve upon the data
reported by retailers in
order to arrive at a useful
decision making tool.
First
each vendor has an accurate
count of how many units the
retailer purchased and they
know when the inventory is
to be shipped. By subtracting
the units sold as reported
in the EDI 852 from the shipped
inventory units you can calculate
an on-hand value. The key
to this work-around is a
good starting point. In most
cases this can be determined
by examining inventory history
and requesting from the retailer
a one time inventory position
count. It's not a perfect
system but over time the
calculated on-hand becomes
more and more accurate and
it is a useful decision making
tool. There are other strategies
as well but we see this as
the most common method for
handling poor on-hand reporting
accuracy.
What strategies
are you using to deal with
poor data quality? More importantly
what retailers are you working
with that are not reporting
accurate on-hand. Many times
the starting point is simply
identifying what data you
can trust and what you can't.
email
your feedback
>
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