Point of Sale (POS) Initiative
In 2014, members of the NEMRA and NMG (NEMRA Manufacturers Group) commissioned a study to understand the state of POS. This initiative was an effort to identify how the POS process could be improved to ensure Reps were accurately compensated.
Key Highlights Include:
- Distributors agreed reps should be compensated for the work on their behalf.
- Distributors were reluctant to share customer information with most of their manufacturers but would share zip code level information.
- Reps were focused on “where” material was sold, not who the material was sold to as they are familiar with their marketplace, key customers and key projects.
- Most manufacturers desire to pay their reps.
- There are challenges in collecting and submitting the data given a plethora of formats. Additionally, there are challenges in the desired format to send (Excel, pdf, EDI, etc) and issues relating to timeliness of submission.
Essentially, there are no industry standards to submit “basic” transactional information to support calculating rep compensation when it travels through a central / regional distribution center or is shipped into another state.
Manufacturers adhered to contractual agreements and continued to compensate their reps to the best of their abilities, however, due to changes at the Distributor and end-customer, Manufacturers need information at the zip code level to accurately compensate their Reps. Most distributors recognized the issue, agreed that reps should be compensated for supporting them and almost all were willing to provide baseline data at the zip code level to support their reps. This baseline data became the basis for the NEMRA POS Minimum Reporting Standards.
At the request of manufacturers, NEMRA then sought an industry solution that would enable distributors to submit their POS information to a central hub, the data would be normalized and aggregated by the distributor and then forwarded to the manufacturer in one data file.
Thus POSConnection was launched. POSConnection is powered by SPARXiQ.
POSConnection provides for the efficient transferring of point-of-sale (POS) data from distributors to a manufacturer.
POSConnection simplifies the process by providing a secure, unified platform for POS data transfer.
- Clean, Standardized Data – Provides manufacturers access to validated and consolidated point-of-sale data each month from all submitting channel partners
- Accurate Rep Compensation – Enables the independent sales representatives to be accurately compensated thanks to complete and accurate capturing of point-of-sale data
- Tracking & Reporting – Manufacturers can review the completion of provided data and access complete history of uploads on-demand
- Cloud-Based Platform – No additional hardware or software is required by manufacturers or distributors to use POSConnection
Endorsing Suppliers and Distributors
To date, 48 suppliers and over 1,250 distributor locations have endorsed the standards. NEMRA’s goal is for every supplier impacted by POS reporting to endorse these standards.