Channel Revenue Management
Semiconductor and electronic component manufacturers rely on complex channel relationships to achieve sales objectives. However, lack of visibility into channel sales activity can lead to internal bid wars that erode margin and impede the ability to assess wins and losses. Additionally, design registrations, contract terms, debits, and point-of-sale data that cannot be tied to specific end-customer transactions can result in overpayment of channel incentives and present obstacles to compliance with revenue recognition policies.
Improve Effectiveness of Your Channel
Model N Channel Revenue Management improves visibility into channel sales activity, enabling companies to more easily assess demand and business success with end-customers and to protect transactional margin by eliminating bidding against yourself and enforcing contract terms. By automatically reconciling point-of-sale data to debits, Channel Revenue Management reduces over-payment of channel incentives and facilitates compliance with revenue recognition policies. And, Channel Revenue Management increases the ease of doing business with partners by streamlining commission calculations and validating inventory levels.
Key Components of Channel Revenue Management:
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Design Registration enables manufacturers to quickly and easily approve and track design opportunities registered by distributors or partners, providing a real-time, comprehensive view of registered opportunities, wins, losses and pending deals.
Channel Inventory arms sales people with the information they need to close orders, reduce returns, and manage price fluctuations caused by excess or insufficient inventory. Provides accurate inventory status for a specific part, customer, quote, or order, and delivers an aggregated view of channel and direct inventory availability and locations.
Price Protection accurately determines which distributors and inventories are eligible for credits when revising published pricing, and analyzes the impact - amount of credit to issue - of price changes on channel inventory and backlog.
Stock Rotation makes it easier to keep the right mix of products readily available to customers. Stock Rotation automates the governance of stock rotation periodicity, eliminates discrepancies between approved rotational levels and return material authorization (RMA) requests, and validates that correct inventory levels are being maintained.
Ship & Debit Processing reduces sales transaction costs by automating debit authorization based on pre-established business rules and providing tracking of debit liability.
Point of Sale automatically and accurately reconciles channel sales data against debits, enabling companies to appropriately identify end customers and assess purchasing patterns, reducing margin erosion caused by overpayment of channel incentives, and facilitating financial accounting compliance for companies with a revenue recognition model based on sell-through.
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