Competitor Erosion Overview dashboard

Businesses that sell smaller items with relatively low technical sales are exposed to competition from other online businesses that can offer a lower price for a similar item. Moving away from products that can be at risk of competitor erosion can help your bottom line.

Competitor erosion analysis is performed on your company's sales history. The analysis considers factors identified to impact an item’s risk of competitor erosion. These are the weight and volume of an item, whether an item is manufactured or purchased, and the sales origin. To use this model, each warehouse must have weight and volume thresholds that are set for shipping.

The Competitor Erosion Category attribute is used to analyze the data. The sales transactions are categorized according to risk as High Erosion, Some Erosion, No Erosion, and Unknown:
  • Transactions are categorized as High Erosion when both the weight and volume of sold items are within the threshold values and the sales origin is Customer Order. Any small, lightweight item which is purchased and then sold can have high erosion risk.
  • Transactions are categorized as Some Erosion when both the weight and volume of sold items are within the threshold values and the sales origin is Point of Sales. Any small, light weight item which is purchased and then sold through POS can have some erosion risk.
  • Transactions are categorized as No Erosion when either the weight or volume of sold items exceed the threshold values. Manufactured items usually do not have risk from competitor.
  • When transactions have data issues such as missing volume, weight, or there is a mismatch in the unit of measure, the transactions are categorized as Unknown. Investigating and correcting such issues improve the analysis.

All amounts are expressed in company currency.

The Competitor Erosion Overview dashboard is the first of three dashboards designed to help you understand how much of your sales you are at risk of losing to your competitors due to your product mix.

The dashboard can answer these business questions:

  • How much of the company’s sales are at risk?
  • What is the erosion trend?
  • Which are the top product groups at risk?
Note: Returns and transactions that are related to the consolidation division are not considered in this model. For information on the Competitor Erosion Category attribute, see Invoiced Order Details. For details about the setup in M3, see Infor M3 Analytics for M3 CloudSuites Administration Guide.

Reports and KPIs

The dashboard contains these reports:

  • Competitor Erosion Overview
  • Competitor Erosion Breakdown by Period
  • Competitor Erosion by Period
  • Product Group Comparison

The report titles for Competitor Erosion Overview, Competitor Erosion Breakdown by Period, and Competitor Erosion by Period are disabled in the dashboard.

KPI charts:

  • High Erosion Trend
  • Some Erosion Trend
  • Unknown Erosion Trend
  • No Erosion Trend

The dashboard also shows Invcd Net Amt Pct, No. of Lines, and Invcd Net Amt for each of these categories: High Erosion, Some Erosion, Unknown, and No Erosion. These KPIs use the Invoice date as basis for analysis and the Sum aggregation.

Currency information is also displayed on the dashboard.

Filters

These standard filters are available:
  • Facility
  • Warehouse (Config. 1)
  • Time (Config. 2)
  • Sales Organization
  • Customer
  • Customer Geography
  • Sales Order Type
  • Promotion
  • Item (Config. 1)

The Time filter is a mandatory filter that is defaulted to current year. This filter shows up to current year + 1.

Drill across

From this dashboard, you can drill across to the Competitor Erosion Analysis dashboard.

Related topics