PTDA: Cost of Goods Sold Format & Guidelines

Distributors are familiar and comfortable with receiving information from manufacturers on an almost constant basis—product and price information updates, new product announcements, backorder notices. There are also times when information goes the other way—from distributor to manufacturer. For a manufacturer, information from their distributors about who is buying their product can assist in creating products that meet market demand, uncovering new applications for existing products, and learning what products need to be taken out of production.

To assist in the sharing of this information, PTDA has created tools for use by manufacturers and distributors in determining how much information should be shared, how the data should be provided from the distributor to the manufacturer, and how the data will be used. Revised by the Programs & Products Committee, the second version of the Guidelines for Successfully Sharing Cost of Goods Sold (COGS) Information has been streamlined to further clarify the fields required for COGS information versus POS data.

Included within the Guidelines are:
A discussion on what is the appropriate information to share and why COGS/POS information is valued
A discussion on potential challenges in sharing COGS/POS information
What manufacturers can do to encourage distributors to provide COGS/POS information
Ethical and policy issues related to customer data including model confidentiality agreements
A case study of how one distributor used COGS/POS data
Additional resources on sharing COGS/POS data

PTDA
www.ptda.org