The ABCs of Point of Sales (POS) Data

the ABCs of Point of SAleS (PoS) DAts of Point of SAleS (PoS) DAtA By Robin Simon I I n recent years there has been increasing use of Point of Sales (POS) data by both manufacturers and retailers to gain insight into consumer behavior. Therefore, it is important to know what POS data is, from where the data comes, and how to reconcile shipments with consumer takeaway to reduce inventory and increase sales and profit. WhAt iS PoS DAtA? POS data measures the last part of the supply chain—how much product the ultimate end-users purchase. In other words, how much cereal shoppers buy from grocery stores; how many cars consumers buy from local dealers; and how much paint people buy from Home Depot, Lowe’s, Wal-Mart, and hardware stores. This is what occurs at the far end of the supply chain, so there are other measures (elements) to be forecasted for different points throughout the supply chain. Let’s review those first. The two most popular measures used in forecasting are orders and shipments. Orders capture the amount of product that customers want from a supplier, while shipments capture the amount of product that is actually shipped to them by the supplier. A few examples ...