Is SKU Management Short Circuiting your Electronic Parts Distribution Business?
Here are the top 5 issues you need to address now.
The electronics parts distribution sector is rapidly evolving to generate increased revenue in the face of tech-savvy customers with high expectations. The complexity and volume of similar electronic components, along with the critical requirement to ensure the right part is selected, drive the need for complete and accurate eCommerce product data. Problems acquiring and managing high-quality product SKUs make it challenging for distributors to be competitive. Addressing the following five critical issues is essential for success in this rapidly changing market.
1. SKU data is incomplete, inconsistent, and/or inaccurate
High quality SKU data is the foundation of successful online Commerce experiences, yet many electronic part distributors find it hard to keep their data house in order due to incomplete product data from manufacturers. Customers struggle to search for, compare, and purchase the right electronic components and parts without accurate descriptions, images, and specifications. In some cases, choosing the wrong part could lead to equipment damage or injury. Distributors are left with frustrated customers, lost sales opportunities, and increased return rates, which negatively affects revenue and costs.
2. An overwhelming SKU data onboarding workload
The manual workload of enriching and onboarding product data is overwhelming for distributors handling tens of thousands of SKUs. This challenge is especially magnified when distributors work with multiple sources of data via many suppliers, and this data is managed by various teams working in silos. Limited staffing of internal product data teams struggle to keep up with the sheer volume of SKUs, often resulting in delayed time-to-market. The longer it takes to update product data and get SKUs eCommerce-ready, the more revenue opportunities are lost to competitors.
3. The scalability problem
As distributors venture into digital channels capable of handling significantly larger SKU volumes, the solutions they employ for traditional ERP systems are often not scalable. Tools and processes that were effective for smaller SKU volumes now struggle to keep pace with the increasing demand for onboarding thousands of complex products, leading to bottlenecks in the data enrichment process. Consequently, distributors find it challenging to scale their operations quickly and cost-effectively without compromising quality.
4. Pressure to grow revenue
Distributors feel intense pressure to grow their digital channels, especially with a new generation of buyers who expect to quickly and easily find the parts they need when shopping online. With many distributors still relying primarily on incomplete product data from manufacturers, the inability to quickly and efficiently onboard complete and accurate product data hurts their chances of competing effectively in a digital-first market.
5. Balancing speed-to-market with quality
The pressure to increase revenue in a highly competitive market of electronic component distributors selling similar products requires faster time-to-market. This urgency, however, risks compromising quality in the process. As already established, inaccurate and incomplete data can lead to customer dissatisfaction, increased returns, and lost sales. A solution that enables rapid product onboarding while maintaining high standards of data accuracy is essential for distributors looking to enhance their eCommerce presence and build customer trust.
How SKU Build Can Spark Success
Pivotree SKU Build is a service designed to address these issues head-on. By delivering 99.7% accurate product data, Pivotree SKU Build helps distributors solve the problem of incomplete and inconsistent SKUs, improving customer search, comparison, and purchasing experiences. With 75% cost savings compared to internal data enrichment and 60% faster time-to-market, SKU Build enables distributors to scale their SKU onboarding efficiently.
Additionally, automated data transformation processes ensure distributors can keep up with demand without sacrificing data quality, with scalability to handle large volumes of SKUs delivered quickly to eCommerce systems.
With Pivotree SKU Build, electronic parts distributors can overcome the challenges that have held them back and unlock the potential of their digital channels, driving revenue growth and staying ahead in an increasingly competitive market.
Liked what you read? You can learn more by downloading our whitepaper: Avoiding the Pitfalls of Poor-Quality Product Data in a Digital World.
By: Chantal Schweizer, Practice Director of Strategic Data Services
Chantal Schweizer is recognized for her leadership in taxonomy strategy, design, implementation, and governance projects that have transformed some of the world’s largest organizations, generating significant eCommerce ROI. With 19 years of experience in the product data management industry, she has worked in both client and consulting roles. In 2022, Chantal was honored as Taxonomist of the Year.