Its range limited only by imagination, Consumer Technology is currently found everywhere — at home, in the car, office and gym. The pace at which the Consumer Technology market grows is unbelievable. And so are consumers’ preferences. We are currently witnessing some of the highest device-ownership levels ever registered.
The rapid evolution of the Consumer Technology market places puts manufacturers under tremendous competitive pressure to be first-to-market with unique and differentiated products. But Consumer Technology is a crowded market with low barriers to entry, and successful products quickly inspire similar offerings from competition. And that leads to rapid price erosion. Consumer Technology manufacturers must constantly innovate and enhance their products in lesser time. This dramatic shortening of the consumer product lifecycle has a ripple effect that reaches far beyond the Consumer Technology marketplace to other sectors.
As a consequence, the challenges manufacturers now face include:
- A multi-channel, complex distribution model
- Consumer Technology manufacturers need complex distribution models to reach a broader demographic globally, and have to overcome poor channel control and visibility.
- Highly seasonal sales and shrinking margins
- Dependence on key buying seasons and effective promotion campaigns around these seasons demands accurate forecasting and high campaign ROI.
- Poor inventory visibility
- A complex distribution model and high volumes contribute to the difficulty manufacturers and retailers have to quantify the amount of inventory floating in the channel and the ability to pinpoint its location.
- Unwieldy volumes of data
- Because of their direct relationship with mid-tier retailers, manufacturers struggle with an exponential increase in data volume, the result of receiving significantly more store-level data generated by SKU’s, coupled with an increase in total sources for channel data. While this data inflow helps manufacturers determine patterns in demand and subsequent inventory optimization, data management and making data actionable become more challenging than ever.
- Supply chain management ownership shifted to manufacturers
- Now that supply chain ownership has shifted from retailers to manufacturers, manufacturers need to make more tactical decisions.
- Opportunities for fraud
- Lack of end-to-end visibility leads to an increased likelihood of inventory fraud, pricing irregularities, and grey-market activities.
- Trend to lean initiative across organizations
- By moving to lean initiatives to reduce cycle time and the associated waste, manufacturers increase the need for channel inventory and point-of-sale visibility.
In this changing landscape, it is more critical than ever for manufacturers to have complete channel visibility. It can help them significantly improve their critical downstream business processes. Zyme’s industry-leading Channel Data Management solution delivers decision grade channel data — sales trends, inventory positions, partners/program performances etc. — that empowers our Consumer Technology customers to make confident decisions that have a significant impact on these business processes.
Zyme’s customers represent the top companies in the Consumer Technology world and showcase the strength and depth of our experience with the Consumer Technology sector, from Motorola, Logitech, and Plantronics to Dell. Zyme covers 90% of world’s top-tier distributors and resellers.
Typical use-cases for Zyme in Consumer Technology sector include :
- Supply chain management
- Inventory rebalancing
- Short-term forecasting
- Incentive and price protection payments
- Sales commissioning
- Fraud protection