Channel Data Management (CDM) is a process used by companies to collect, integrate, and analyze data across various distribution channels. This system helps organizations manage the complexities of a multi-tier, multi-enterprise supply chain that has multiple distribution channels enroute to market. Channel data plays a large role in understanding the effectiveness of channel partners and can help a company increase its sales, budget effectively, plan, and serve its customers better.

Effective channel management requires several different tasks, such as tracking and reporting product sales by partners, ensuring adequate inventory levels, preventing channel stuffing, detecting account or territory violations, and grey market activity. All these tasks require complex analysis of large amounts of data that must be clean, reliable, and timely.

Channel data management improves the ability to plan inventory and logistics based on real-time, detailed channel data. Connectivity to a large partner network also makes data collection easier and more affordable.

Channel data management ensures compliance by managing revenue recognition based on thorough inventory reconciliation. It can also help a company avoid lost revenue opportunities, identify and mitigate conflict within a channel, and avoid reputation damage by capturing grey market activity.

Channel data management can help reduce disputes and improve commission payment accuracy by ensuring sales transactions are assigned to the correct opportunity and sales representative.