Service Improves Control of Distribution Channels
REDWOOD SHORES, CA -- (MARKET WIRE) -- May 17, 2006 -- Zyme Solutions today announced its presence in the channel management market with Outsourced Channel Visibility Services. Zyme is the first company to offer comprehensive outsourced services to help high-tech companies gain visibility into and manage their distribution channels. Zyme's innovative service takes over the process for capturing and validating critical channel information such as sales and inventory levels. This results in significant improvements in the quality, efficiency, and reliability of channel operations, filling an important value gap for the high technology industry.
"Most high-tech product companies lack adequate visibility into what products are selling out of the channel to end-customers and what inventory remains in the channel, and they have relatively rudimentary processes for managing their channel operations based on incomplete information," said Zyme founder and CEO Chandran Sankaran. "This lack of channel visibility and process control has large financial and operating consequences, including an estimated $6 billion each year in erroneous overpayments to channel partners, and billions of dollars of unsold inventory in the channel that has to be written off."
"This is a big problem," said Bruce Richardson, Chief Research Officer of AMR Research. "Most technology product companies face significant financial and operating costs resulting from lack of channel visibility and channel process control. Zyme's approach of taking over the whole problem on an outsourced basis, and acting as the channel operations department on behalf of their clients, is a distinctive new approach to delivering value to the high-tech industry."
Sankaran added, "Sarbanes-Oxley compliance and complexities in revenue accounting rules have further highlighted the need for CFOs and operations managers to more precisely understand the state of their channel business."
Zyme acts as the "channel visibility department" for technology product companies that sell through distribution channel partners and offers several services:
- Collecting and scrubbing daily and weekly sales and inventory data feeds from channel partners.
- Following up with channel partners to resolve errors and discrepancies.
- Conducting reconciliation and other analyses to ensure the data is valid.
- Investigating anomalies and conducting audits as needed at distributors.
- Processing, validating, and auditing rebate, special pricing and price protection claims.
- Analyzing sell-through information to enable sales commission, demand forecasting and market intelligence decision-making.
"Zyme can quickly take over a client's channel visibility process," Sankaran continued. "Since we run the process on our clients' behalf, there is no software for clients to install, maintain or learn to use, and clients do not need to staff internal teams of analysts and project managers dedicated to channel visibility and operations. We take full ownership of the problem, and deliver results."
Founded in 2004, Zyme is a fully outsourced, SAS 70 compliant service provider. Zyme represents the next evolutionary step in the outsourcing value chain for the high-tech industry, acting seamlessly as the channel visibility and operations department for clients. Numerous leading high-tech companies such as Symantec Corporation, and Linksys, a division of Cisco Systems Inc., rely on Zyme to manage hundreds of global channel data feeds each week across thousands of product SKUs.
For more information, visit www.zyme.com
Chris Toth/Suzanne Miller