Entering a new market starts with laying the operational foundation: selecting the right sales channel, evaluating regulatory and customs requirements, choosing logistics partners, and setting up warehouse infrastructure. But that’s only part of the equation. To ensure consistent product availability in a new market, your ability to quickly respond to changes in demand is just as important. This is where access to up-to-date sales data plays a crucial role.

In today’s environment, demand can fluctuate rapidly — often for reasons that are hard to predict. It’s influenced by dozens of factors, from shifts in consumer behavior and seasonal surges to social media trends. Take last year's case when Iceland's supermarkets faced a cucumber shortage after a viral salad recipe from a Canadian TikTok creator caused an unexpected spike in demand.

Without access to real-time data, manufacturers only become aware of such shifts when an urgent order comes in. At that point, ramping up production quickly is difficult, leading to delays and additional costs. As a result, not only does the profit margin suffer — the supplier’s reliability in the eyes of their partner is also undermined.

Some companies try to offset uncertainty by increasing their inventory. However, this strategy is not always effective — 80% of small and medium-sized businesses admit they struggle with forward planning and excess stock. At the same time, the share of companies relying on larger inventories to manage risk dropped from 59% to 34% in 2024, largely due to rising storage costs. All of this points to one key insight: Inventory cannot replace accurate and timely demand visibility. Synchronization between data, production, and logistics is the foundation of a flexible and resilient supply chain in any new market.

Good data management is a competitive advantage in new markets. There are two primary models of collaboration between a supplier and a distributor or retailer. The first is order-based planning, where supply volumes are determined solely by the partner’s purchase orders, and the manufacturer has no access to sales performance data. The second is data-driven planning based on secondary sales, which the distributor shares through a CRM or other systems. In this model, the supplier can monitor changes in demand almost in real time.

Supply-based planning enables:

Quick response to demand shifts. Analytical tools make it possible to detect rising demand for specific products in time, adapt production and logistics processes accordingly, and reduce the risk of shortages or overstocking.

Avoidance of unnecessary costs. When supply planning is based on real-time sales data, there’s no need to hold excess inventory “just in case.” This helps maintain optimal stock levels and avoids tying up extra capital in unsold goods.

Execution of marketing activities on time. The popularity of certain products in a new market may differ from your home market, and may even vary between regions of the same country. Sales data allows you to detect dips in demand early, and launch targeted trade marketing campaigns to keep sales stable.

Improve service levels. When supply is aligned with actual demand, you can fulfill partner orders on time, ensure product freshness, and strengthen your reputation as a reliable supplier.

How Secondary Sales Data Impacts Supply

A collaboration model where the manufacturer has access to secondary sales data forms the foundation of a lean approach — one that eliminates all excess. The partner shares data from their CRM or other systems, including SKU-level sales, current warehouse inventory, and upcoming promotional activities. This information can be updated weekly or even daily.

This is especially crucial in a new market: You don’t yet have reliable forecasts or historical sales data to guide planning. Having a live picture of demand allows you to avoid both stockouts and overstocking — because you can align supply volumes precisely with actual needs.

For example, a retailer might experience a sudden surge in demand for a new product when inventory ran out faster than expected. Normally, the retailer might ship this product by sea, but in this case, they opted to switch to air freight. Logistics costs increased by 20%, but the company determines that the extra cost is worth it, as customers had already become accustomed to the product, and its absence on the shelf could have meant losing them.

Such situations aren’t always predictable. However, monitoring sales in near real time significantly reduces the risk of these kinds of disruptions.

Fixed Monthly Order-Based Supply

In a new market, you may encounter partners — retailers or distributors — who aren’t ready to share their data. The reasons vary, from concerns about confidentiality to technical limitations. For instance, 83% of supply chain professionals report that less than half of their supply processes are automated, which also affects their ability to engage in digital collaboration.

In such cases, partners typically propose a fixed monthly ordering model: on an agreed-upon date, they submit a purchase order for the quantity of product needed for the next period.

This model works but has its limitations: without access to sales trends, the supplier can’t see actual demand, making it difficult to respond quickly to changes and forcing them to hold excess inventory as a “safety buffer.” This complicates production planning and can negatively impact service, increasing the risk of losing the new partner’s trust.

To gradually move toward a more transparent collaboration model via CRM, a company could suggest that the partner provides weekly sales reports and shares inventory data broken down by SKU. This won’t require complex automation but will allow you to track demand dynamics and plan supply more effectively.

The ability to make data-driven decisions is a key factor for successful market entry. Companies that invest time and resources in digital tools, analytics, and data sharing with partners not only meet demand better but also build flexible and efficient supply chains. Retail and FMCG companies that actively adopt advanced technologies grow twice as fast, and deliver nearly three times higher shareholder returns than their competitors.

Yuri Bykoriz is managing director for Central and Eastern Europe at Kormotech.