Reps often celebrate one number while the other one is falling.
Sell-in and sell-out get used as if they mean the same thing. They do not, and mixing them up leads to the wrong decision every time.
Sell-in is company to distributor. It shows stock pushed into the channel. Orders, bonus goods and month-end timing move it.
Sell-out is distributor to pharmacy and hospital. It shows demand pulled by the market. Prescriptions and how fast pharmacies reorder move it.
Between them sits a third number: distributor inventory. When sell-in runs ahead of sell-out, it builds up, and next month's orders shrink to clear it.
A strong sell-in month with flat sell-out is not growth. It is stock waiting.
As a rep, your work shows up first in sell-out. That is the number closest to the patient, and the one I ask reps to follow.
“Sell-in fills the warehouse. Sell-out tells you if patients are being treated.”
Lesson 2 of 5 in Step 2: Your numbers and forecast, with the full guide and a checklist for this week.