What are the most important metrics a distribution company should be measuring?

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As a distribution company, there are several important metrics that should be regularly measured to ensure the company's efficiency and effectiveness in meeting its goals.

Some of the key metrics include:

  • Inventory turnover: This metric measures the number of times inventory is sold and replaced in a given period of time. A high inventory turnover indicates effective inventory management, while a low turnover may suggest overstocking or slow-moving inventory.
  • Order fulfillment rate: This measures the percentage of orders that are filled accurately and on time. It provides insight into the efficiency and effectiveness of the company's supply chain and logistics processes.
  • Delivery performance: This metric measures the accuracy and timeliness of deliveries to customers. It can help identify bottlenecks in the delivery process and inform decisions about adjusting delivery schedules or transportation routes.
  • Customer satisfaction: This is a crucial metric for any distribution company, as it reflects the quality of service and product the company is providing to its customers. Measuring customer satisfaction can help identify areas for improvement and increase customer loyalty.
  • Operating costs: Tracking operating costs, such as transportation and storage expenses, can help the company optimize its expenses and identify opportunities for cost savings.
  • Sales growth: This measures the growth of the company's sales over time, providing insight into the company's overall performance and success. By regularly measuring these and other key metrics, a distribution company can gain a deeper understanding of its operations, identify areas for improvement, and make data-driven decisions to achieve its goals.

Dynamics 365 Business Central is a cloud-based enterprise resource planning (ERP) solution that can greatly improve the analytics capabilities of a distribution company.  Stand by for our next blog that will explain more....

About the Author

Susan Looby

Executive sales expert with 30+ years of accounting background and deep understanding of business processes as they relate to lite manufacturing, distribution, specialty retail and hospitality.  During this time, I have focused on building “Clients for Life!”

About ACE Micro

ACE Micro, LLC is a professional services firm committed to delivering business solutions to mid-market organizations. They are a Microsoft Partner with expertise in Dynamics 365 Business Central, among other platforms. ACE specializes in serving the lite manufacturing, distribution, and hospitality industries. ACE manages several offices within the United States.

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