NAED And NEMRA Jointly Release Recommended Best Practices To Streamline Point Of Sale/Point Of Transfer Data

St. Louis - The National Association of Electrical Distributors (NAED) and the National Electrical Manufacturers Representatives Association (NEMRA) have jointly released a white paper on Recommended Best Practices in Point of Sale (POS)/Point of Transfer (POT) Data Collection. Created by the POS/POT Task Force, the recommended best practices white paper answers an industry need for specific guidelines in the compilation and sharing of this crucial information among channel partners.

POS data encompasses end-customer transactions, while POT data focuses on the transfer of products within a company. The data can be valuable in marketing and sales growth strategy, as well as assigning credit to sales representatives. The purpose of the white paper is to make the collection process more efficient and reduce costs for all parties involved.

"POS and POT information is a primary method to compensate manufacturer's representatives for the sales support they provide to the distributor. By providing this information, the manufacturer and their representative are provided with a strong motivation to help the distributor maintain a quality inventory. While there are not a lot of examples today, it is expected that manufacturers with this information will come up with plans and programs for up-selling with the specific distributor, based on data analysis," said Richard Offenbacher, senior vice president, Graybar.

"Our ability to excel as an industry is not measured by sales and marketing prowess alone. To go to the next level, we must also improve our transactional efficiency and eliminate unnecessary activities, as well as wring cost out of the channel. POS/POT is an industry initiative that will do just that, and it is supported by NAED, NEMRA, and the Manufacturers Council. It needs our support to help take us to the next level of efficiency," said Robert Smith, executive vice president sales, Pass & Seymour/Legrand.

The POS/POT effort began after a comprehensive survey was released to NAED membership in 2004. A joint task force was then created by NAED, consisting of NAED distributors, electrical manufacturers, and a NEMRA electrical manufacturers' representative. The POS/POT Task Force is led by chairpersons Bob Smith of Pass & Seymour/Legrand and Dick Offenbacher of Graybar and has involved 16 companies.

The POS/POT Recommended Best Practices:

• Standardize industry terminology for POS/POT
• Develops awareness of what distributors and manufacturers can provide in return for POS/POT data
• Standardizes formats for the collection of POS/POT data across the industry

"I have already presented the draft paper to several distributors and manufacturers for implementation. As a representative in a major POS/POT area, I can not count the numerous hours I have spent trying to get correct information on sales and, therefore, revenues for my organization. As president & CEO of my company, this time could have been productively used implementing sales and marketing strategies of my manufacturers which would result in additional sales and revenues for our electrical distributor associates, our manufacturers, and ourselves. Every day we read of distributor acquisitions, so the need for a standardized format is now. It will improve the efficiency of the electrical channel and free up valuable time for the rep to do what he/she does best:sell," Jack Floyd, CEO, One Source Associates and past chairman of NEMRA.

SOURCE: NAED