FoodService Distribution Metrics That Matter

Dave Foreman

How to Develop Actionable Foodservice Distribution and Business KPIs for Optimal Inventory, Agile Operations, and Increased Sales

A recent National Association of Wholesaler-Distributors article points out that distributors average four percent net profit. The article further states that distributors lose money on forty percent of invoice line items sold. Margins in commoditized industries, increased pressure from Amazon, manufacturers with direct-to-consumer (D2C) sales models, and other factors often push margins down even further for some distributors.

So, how are foodservice distributors supposed to add value while fending off larger competitors, growing profits, and managing daily challenges? Metrics help. Metrics provide a clear picture and a single source of truth of what is happening in every corner of the business. A comprehensive business application eliminates data silos providing centralized, accurate, and insightful data to keep everyone on the same page. Used correctly, key performance indicators help distribution executives to outmaneuver competitors, build customer trust, and maintain employee loyalty to take their businesses to the next level.

While most foodservice distributors use metrics to drive daily decisions, improve quality, and guide operational excellence, many have yet to harness metrics to transform their organizations. They struggle to make sense of the information due to data issues, lack of strategic vision, missing benchmarks, and a focus on lagging indicators. Further, departmental metrics do not always align with corporate goals.

This ebook explains the importance of tracking key performance indicators, diverse metric types, and common mistakes made by wholesale distribution executives. Discover the most important metrics to monitor for continuous improvement and align goals for actionable metrics to transform your entire organization.



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