All food service distributors rely on measurements to monitor business activities and performance, document successes and challenges, and help direct management decision-making. Commonly called Key Performance Indicators (KPIs), we measure a number of parameters simply to comply with mandatory accounting and reporting requirements, but smart management will incorporate those KPIs into valuable intelligence that helps run the business more effectively and more efficiently.
We are in what some may call a golden age of business intelligence and KPIs. While the proliferation of connected sensors and smart devices, commonly referred to as theInternet of Things (IoT), provides unprecedented visibility and control, it also multiplies the information overload problem that can often result from this new-found data access. Fortunately, technology is also presenting solutions to that problem in the form of powerful yet user-friendly analytics and data visualization tools.
Most distribution management software, sometimes called back office, ERP (Enterprise Requirements Planning) or DRP (Distribution Requirements Planning) systems, offer a variety of pre-defined KPIs which the various users within the company can pull together and tweak to fit their specific situation.
Additionally, all of this data, analytics, and business intelligence is made practical and functional by the cloud because only cloud deployment offers the connectivity, integration, security, scalability and capacity necessary to harness all of this data and make the intelligence accessible wherever it’s needed, whenever it’s needed.
Learn More with this Key Performance Indicators for Distribution Whitepaper
DISTRIBUTION ERP + THE CLOUD
The ability of the cloud to connect all business data and the effectiveness of distribution ERP come together to make KPIs accessible and effective for food service distributors through systems like Prime FoodService Software, a complete cloud-based ERP platform, built into the Acumatica cloud ERP framework, specifically for the needs of food distribution.
Let’s explore three primary KPIs that all food service distributors should be tracking and how Prime FoodService Software addresses them:
INVENTORY TURNOVER TRACKING TOOLS
Managing inventory is one of the most vital tasks for a distribution company.
Prime FoodService offers users the ability to create their own view of inventory turnover, focusing on high and low turnover items. This will arm users, especially purchasing managers, with the ability to spot trends early and adjust accordingly, as well as tracking open orders.
These KPI tools help lower the amount of inventory that sits waiting to be sold, lowering the risk of spoilage, and helps users keep hot items in stock.
ARE ORDERS BEING SHIPPED ON TIME?
Fulfilling orders in a timely manner can sometimes be a challenge, especially in these trying times.
Prime FoodService offers a dashboard view of on-time shipping ratios, allowing users to monitor how many orders are being fulfilled successfully. If distributors have multiple warehouses the dashboard will show orders broken down by warehouse, allowing users to pinpoint where the problem in their setup is.
This dashboard, like all dashboards in Prime FoodService, offers drill-down capability, putting even more data at users’ fingertips.
FIND YOUR MOST PROFITABLE ITEMS
It is a simple fact that in the business world not all customers are created equal, and neither are the items distributors are selling.
Prime FoodService offers distribution companies the ability to see a breakdown of profitability by item or item class, allowing for much-needed periodic reviews of what items are proving most profitable.
MAKING THE DATA MAKE SENSE
These are just a few examples of how Prime FoodService can help distributors harness their data and focus in on Key Performance Indicators to get a better, more well-rounded idea of how their business is performing.
By utilizing the built-in dashboards within Prime FoodService, distributors get in-depth detail across a wide range of spectrums, giving them much needed context to make decisions based on these KPI. Each of these dashboards is customizable and features drill-down capability, allowing users to focus in on specific issues they are tackling or take a wide view of the entire operation. Each user can also have their own role assigned, giving them the exact access to information needed to complete their job without overwhelming them with excess data.
From most profitable items to net and gross margins, from receivable reports to short shipped items, companies that make the most of their data give themselves the best chance to succeed. With Prime FoodService Software, built in the Acumatica Cloud ERP framework, food distribution companies give themselves the best arsenal of tools for long-term, sustainable, growable success.
Watch our latest recorded webinar to learn more about Prime FoodService Software