Schneider continues to invest in Zyme to reach the next level – a fully integrated digital experience using point of sale and inventory data to automate the ways they manage their channels, and make targeted management decisions based on near real-time channel intelligence.
Additional Benefits to Schneider
• Improved the overall gathering and utilization of channel specific data
• Broadened the scale of inventory tracking to include a greater number of channel partners, enabling significant improvements in inventory management
• Improved the accuracy of inventory days-on-hand calculations
• Fine-tuned the targeting of rebates and volume incentive programs based on rich data collected from the channel, thus producing better results
• Achieved more accurate rebate payments due to standardization of data
• More closely analyzed the performance of individual partners, making it possible to deliver better guidance and motivation
• Successfully benchmarked the performance of key metrics against industry best practices
For more information, please visit - http://www.zyme.com/channel-data-management
Schneider Masters Its Sales Channels with Zyme Channel Data Management
1. “ CDM has definitely made us more successful. We have raised our level of awareness
of metrics, like inventory days on hand, active reseller base and revenue contribution
by Partner type, enabling our management team to understand and respond to what’s
actually taking place in the market right now.”
— Kevin Nusky, Director of Marketing and Sales Operations, Schneider Electric
Promoting Innovative
and Responsible Energy
Management
Schneider Electric is a global
specialist in energy management
and automation, with operations in
more than 100 countries, offering
integrated solutions across multiple
market segments, including
leadership positions in nonresidential
and residential buildings, industries
and machines manufacturers, utilities,
infrastructure, data centers,
and networks.
In today’s “always on, always
available” world, where businesses
can’t stop and downtime is measured
in dollars, the company provides
protection against some of the
leading causes of downtime, data
loss and hardware damage, power
problems, and temperature.
As a global leader in network-critical
physical infrastructure, Schneider
Electric sets the standard in its
industry for quality, innovation,
and support.
Leveraging CDM to Improve
Inventory Management
“Our company has successfully
worked with Channel Partners since
the early ‘90s on a global scale,”
explained Kevin Nusky, Director of
Marketing and Sales Operations in
Schneider’s IT Business Unit. “Over
65% of our sales go through a two-
tier or three-tier distribution system.”
Schneider Masters Its Sales
Channels with Zyme CDM
Channel Visibility Challenges
• Limited inventory tracking –
available only for larger partners
• Lack of SKU-level visibility
to inventory in stock
• Limited ability to create
programs to reduce
stock levels
• Monthly, rather than weekly,
reporting outside of key markets
created difficulties in responding
to market conditions and
managing partners proactively
• Lack of confidence in channel
sales and inventory data
due to errors introduced by
manual reporting
• Partner management based on
limited information was reactive
and tactical
Schneider Electric Case Study | Page 1
2. To maintain strong visibility and
develop an understanding of what
is happening in their markets,
channel managers need to see
comprehensive sales out data from
channel partners to end customers.
“My team is working on finding
answers to questions like, ‘What is
the velocity on sales out?’ and ‘How
healthy is our channel?’ Then we slice
and dice that data all the way down
to individual channel partner types,”
Nusky added.
As a result of its years of experience
working with channel partners,
Schneider has honed its best
practices in gathering and utilizing
specific data.
“In the past, we looked at days of
inventory on hand, but because we
were collecting the data manually,
we got only the information on total
inventory from each partner. We
did not have visibility at the product
category level, which negatively
impacted the accuracy of our ability
to act. We are now getting detailed
inventory views from Zyme, not
only with sales out data, but with a
detailed inventory list.”
The Zyme platform is a powerful
business tool for Nusky’s team.
“I can now understand, at the
product family level, which products
are sitting in stock and which ones
are selling through. I can think about
how I target rebates and volume
incentive programs to sell the
remaining inventory, or jump-start
something that hasn’t done well.”
Another benefit of gathering and
analyzing more granular data is that
Schneider has improved the accuracy
of its inventory days-on-hand
calculation (DOH).
“Many of our products are ordered
through distributors and drop-
shipped to their customers, so those
items are never held as inventory. Our
previous inventory DOH calculation
did not have the ability to distinguish
between these product categories
so we included all of them. Now, with
better product level information, we
can make sure that drop-shipped
products are not included in the
inventory DOH calculation, improving
our overall accuracy.”
Schneider has been able to broaden
the scale of its inventory tracking,
expanding beyond the small subset
of large partners that were being
tracked prior to implementing Zyme.
Schneider Electric Case Study | Page 2
Management Goals
• Increase access to, and
awareness of, channel
sales and inventory data
across company
• Increase sales through
strategic channel partner
management based on
key metrics
• Expand the number of
partners reporting
• SKU-level inventory visibility
• Weekly, rather than monthly,
reporting to improve agility
of channel sales
Realized Benefits
• Processed 49 million
transactions and seven
years’ of historical data in
less than three weeks, with
100% accuracy
• Condensed the size of
Schneider’s Master
Channel Data File by 50%
from 6.7 million records to
3.4 million via elimination of
duplicates and correction of
erroneous records
• Achieved better channel
coverage, with more
partners reporting
“ We tried to maintain
our own channel
data management
solution, but quickly
realized that with the
amount of energy
and effort it required,
it wasn’t sustainable.”
3. Reducing Rebate Overpayments
“With nearly 1,000 reporting
partners scattered across every
developed country (including
Mongolia), it is challenging to
effectively collect and analyze sales
and inventory data, particularly when
some of the reporting from smaller
partners is done manually,” according
to Kevin Nusky.
“In the past, we were manually
processing all of the files from our
reporting partners. Outside of our
key markets, we were not getting
reports as frequently as we wanted –
partners were reporting just once
a month. Zyme’s solutions have
helped us automate our data
collection processes and increase
the frequency of reports from
monthly to weekly.”
With Zyme’s CDM solutions
and best practices, Schneider has
reduced the overpayment
of rebates.
“We were paying out more for rebates
than we should have, because we
were using a cost field that was
incorrect,” Nusky said. “Once we
automated, we became very strict
about the fields partners needed to
report, with rules and definitions
for each field. When we began
receiving the automated data from
Zyme, we had an ‘aha’ moment that
told us we had been paying out on
the wrong numbers.”
Automated reporting has helped
Schneider reduce human errors that
can be introduced through manual
reporting, and eliminate the potential
for file manipulation before his group
receives it – two benefits that improve
confidence in the data across the
company.
Increasing Revenues through
Better Partner Development
Nusky is most enthusiastic about the
impact Zyme has had on channel
partner development and, by
extension, sales results.
“With Zyme, we definitely have the
ability to perform a finer analysis on
our partners, and look closely at their
level of activity. We now know which
partners are most active and how
they are contributing, compared to
inactive partners. I can quantify the
value of a partner by their program
status level.”
Schneider also assesses partners
by examining their frequency of
purchase and total volume.
“I’ll check prior year sales to learn
whether a partner sold just one
big deal that landed in their lap,
or whether they actively pursued
ten smaller sales. I’m interested in
understanding that. It reveals their
level of commitment. Then, I compare
that data to the current year and
develop a list of partners who
showed activity last year, but none
this year. I use that information
to work with my sales team, and
suggest ‘this is the target list you
should call on and look for growth
initiative opportunities and low-
hanging fruit for partner expansion.”
Has this approach paid off in
higher sales?
“Yes, it really has,” Nusky affirmed.
“We’re doing this actively in Europe
right now and, while we have not
quantified the results precisely, we
know there has been an improvement
in overall sales because of the
increased engagement and mind
share we are generating.”
Schneider Electric Case Study | Page 3
“ Zyme has illuminated
the way we look at our
partners on a large scale.”