FoodService distribution is a metrics driven industry. Everything from accounting to sales to warehouse operations is driven by metrics, but a shockingly low percentage of distribution businesses use or plan to use data analysis as part of their day to day operations. While the uses of data analytics are limitless, this article will outline seven key areas that can be improved by harnessing the power of metrics and data analysis.
A modern, agile ERP solution allows users to easily capture and compare efficiency metrics such as put-away picking, order fulfillment, and and receiving- all key areas for distributors. This visibility allows managers to gauge growth and earmark areas for improvement.
FoodService distributors use metrics to monitor customer loyalty and market share and growth for business strategy. Tracking and projecting these metrics is vital to long-term success.
Metrics do not exist in a vacuum. Businesses often need to align goals (and the metrics they are judged on) to company-wide initiatives and plans. Whether it’s reducing overhead or increasing efficiency, the right ERP system can assist in finding the metrics to gauge the success of corporate initiatives.
Increasing profitability comes down to selling more, reducing costs, or raising prices. Tracking the right metrics can make all three of those goals easier. Real-time data shows how changes to pricing and demand impact profitability, allowing for the right decisions to be made in the moment.
KPI’s lower the risk associated with common issues like dead stock, ineffective processes, and quality issues. By setting business-specific metrics to monitor companies can be in front of the threats they are most likely to face.
Without data decision making is essentially a guessing game. By monitoring relevant metrics decision makers can ensure they are making the right calls on everything from investments and expansion to product choices and pricing.
From debt reduction to increased happiness of both employees and customers, data monitoring offers companies a myriad benefits.
By choosing a modern, agile ERP system, foodservice distributors can harness the power of KPI and data monitoring. By using those metrics to power the business and drive decision making they give themselves a leg up over the competition in key areas, positioning themselves for long-term success.