One Blog |February 7, 2024 | Blog

POS Waste is Real

OnTrak Software

POS Waste is Real

One of the country’s largest beer distributors believed they were paying close attention to their permanent POS spending, efforts and activity.

They spend well over $3 million annually on permanent POS marketing. They recently completed an analysis project that showed that 20-25% of that POS was being wasted – Lost, misplaced, or trapped in their warehouse past its expiration date (many POS items are perishable.)

That’s over $600,000 in waste. That’s a big number!


How does POS waste happen?

Permanent POS waste takes many forms. Items can be lost once placed in a retail account; they can get buried in a wholesaler’s warehouse, and not see the light of day; they can get miscategorized upon receipt and sit unused; and unfortunately, they can be stolen.

In most of these cases the waste is accidental. With all the things a beverage distributor has to do and keep track of on a daily basis, sometimes proper POS management just gets lost in the shuffle.


How can POS waste be rectified?

The key to avoiding POS waste is tracking, measuring and managing permanent POS all the way through the process. Track the POS items from the minute they arrive on a truck to your warehouse. How many items were received and where did they get stored in the warehouse. Track which sales reps are ordering POS items and for which retail accounts.

Then measure POS efforts and results. How do sales look before and after a particular POS program or item is placed in an account? How much of the POS that arrives in your warehouse is actually being allocated to accounts?

And finally, manage.  Use data to make smart business decisions related to POS marketing. Control which territories and accounts have access to important POS collateral. And review sales figures and POS usage to figure out what’s working and make that a “best practice” for future operations.

The wholesaler at the top of this article turned to PermaTrak® and is using its data and reporting capabilities to reduce waste with the goal of eventually eliminating it altogether.

Distributors who turn to POS management tools like PermaTrak see immediate improvement in their POS marketing efforts and results.

If you have questions about your permanent POS marketing efforts or would like to hear about some POS success stories and best practices, please feel free to reach out here.

Over 100 Beverage Distributors Trust OnTrak solutions.

OnTrak is a Proud Member of:
Wine & Spirits Wholesales of AmericaNational Beer Wholesalers Association Path to Purchase Institute

Hundreds of Beverage Wholesalers Use OnTrak's SaaS Tools

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