{"id":11319,"date":"2023-04-10T10:50:20","date_gmt":"2023-04-10T10:50:20","guid":{"rendered":"https:\/\/testv32.demowebsitelinks.com\/parallel\/?p=11319"},"modified":"2023-04-10T10:50:20","modified_gmt":"2023-04-10T10:50:20","slug":"kpis-for-every-distribution-business","status":"publish","type":"post","link":"https:\/\/testv32.demowebsitelinks.com\/parallel\/2023\/04\/10\/kpis-for-every-distribution-business\/","title":{"rendered":"KPIs for Every Distribution Business"},"content":{"rendered":"<div class=\"blog-content\">\n<div class=\"paragraph\">Whether you are trying to see where your business is or where you need to be, there are many types of KPIs you need to track when it comes to your distribution company.<\/p>\n<p>\u200bData is a good thing for all distributors, but when it comes to improving your business performance, having too much data can be even worse than not having enough.\u00a0 You\u2019ll be so buried in the data and reports that you\u2019ll miss the most important indicators of your business health.<\/p>\n<\/div>\n<div>\n<div class=\"wsite-image wsite-image-border-none \"><a> <img decoding=\"async\" src=\"https:\/\/www.parallelsolutions4u.com\/uploads\/1\/5\/7\/3\/15732292\/acumatica-dashboard-with-mobile-phone_orig.png\" alt=\"Picture\" \/> <\/a><\/p>\n<div><\/div>\n<\/div>\n<\/div>\n<div class=\"paragraph\">\u200bThat\u2019s where Key Performance Indicators (KPIs) can make or break a business.\u00a0 With proper distribution KPIs you get a clearer picture of your business with less effort.\u00a0 These measurements, when designed for your business, can be used to improve performance and results. Thousands of measurements have been defined over the year including many \u201ccommon\u201d measurements that virtually every distributor can use:<\/p>\n<ul>\n<li>Profit and Loss<\/li>\n<li>Profitability by Customer<\/li>\n<li>Cash Flow<\/li>\n<li>Inventory Turns<\/li>\n<li>On Time Shipping<\/li>\n<li>And more<\/li>\n<\/ul>\n<\/div>\n<h2 class=\"wsite-content-title\"><span style=\"font-size: x-large;\">What can KPIs do for my distribution business?<\/span><br \/>\n<span style=\"color: #0d5fa9;\"><br \/>\n<\/span>Historical and Predictive KPIs<\/h2>\n<div class=\"paragraph\">\u200bKPIs can be tailored to track your overall distribution business status and performance telling you where you\u2019ve been and where you are headed.<\/div>\n<div>\n<div class=\"wsite-multicol\">\n<div class=\"wsite-multicol-table-wrap\">\n<table class=\"wsite-multicol-table\">\n<tbody class=\"wsite-multicol-tbody\">\n<tr class=\"wsite-multicol-tr\">\n<td class=\"wsite-multicol-col\">\n<div>\n<div class=\"wsite-image wsite-image-border-none \"><a> <img decoding=\"async\" src=\"https:\/\/www.parallelsolutions4u.com\/uploads\/1\/5\/7\/3\/15732292\/published\/distribution-with-man.jpg?1635433599\" alt=\"Picture\" \/> <\/a><\/p>\n<div><\/div>\n<\/div>\n<\/div>\n<\/td>\n<td class=\"wsite-multicol-col\">\n<div class=\"paragraph\">Historical KPIs can be set up with alerts and warnings that monitor and detect exceptions, calling attention to issues or \u201cpush\u201d alert messages sent via email or text.<\/p>\n<p>\u200bOn the other hand, predictive KPIs can make it easier to see where you may be heading at a glance. Leveraging internal and external data, these can help you order smarter and plan ahead. Predictive KPIs for distribution may use economic indicators, demographic trends, or specific industry indicators.<\/p>\n<\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"paragraph\">\u200bKPIs can also be set up to target specific areas of your business.\u00a0 Distributors find it hard to pinpoint problems in their processes without these sorts of pictures. Every area of the distribution network can be watched individually or in combinations across multiple factors. Having visuals into areas like inventory, on-time shipments, profitability, etc. for a single warehouse or leg of the supply chain or other groupings or categories can make you successful.<\/div>\n<h2 class=\"wsite-content-title\">\u200bWhat every distribution business should be tracking:<\/h2>\n<div class=\"paragraph\">When it comes to your distribution firm, you need to know, in real-time, which items are being ordered, how fast each item is being shipped, and which items are profitable.\u00a0 Without that insight, there\u2019s no way you will stay competitive now days.<br \/>\n\u200b<\/p>\n<ul>\n<li><strong>Inventory turnover ratio<\/strong>: Quickly and visually see low turnover items and high turnover items while watching open POs and purchasing trends.<\/li>\n<\/ul>\n<\/div>\n<div>\n<div class=\"wsite-image wsite-image-border-none \"><a> <img decoding=\"async\" src=\"https:\/\/www.parallelsolutions4u.com\/uploads\/1\/5\/7\/3\/15732292\/purchasing-manager_orig.png\" alt=\"Picture\" \/> <\/a><\/p>\n<div><\/div>\n<\/div>\n<\/div>\n<div class=\"paragraph\">\n<ul>\n<li><strong>On-time shipping ratio<\/strong>: This simple chart compares different warehouses on shipping metrics and trends. Analysts have a starting point to eliminate individual warehouse concerns and drill down into industry patterns.<\/li>\n<\/ul>\n<\/div>\n<div>\n<div class=\"wsite-image wsite-image-border-none \"><a> <img decoding=\"async\" src=\"https:\/\/www.parallelsolutions4u.com\/uploads\/1\/5\/7\/3\/15732292\/on-time-shipping-ratio_orig.png\" alt=\"Picture\" \/> <\/a><\/p>\n<div><\/div>\n<\/div>\n<\/div>\n<div class=\"paragraph\">\n<ul>\n<li><strong>Profitability by item<\/strong>: This example of Sales and Profitability by Item illustrates the power of a KPI.\u00a0 Having the ability to sort and summarize masses of data to give you business insights is instrumental in making good decisions.<\/li>\n<\/ul>\n<\/div>\n<div>\n<div class=\"wsite-image wsite-image-border-none \"><a> <img decoding=\"async\" src=\"https:\/\/www.parallelsolutions4u.com\/uploads\/1\/5\/7\/3\/15732292\/sales-profitability-by-item-class-and-item_orig.png\" alt=\"Picture\" \/> <\/a><\/p>\n<div><\/div>\n<\/div>\n<\/div>\n<div class=\"paragraph\">\u200bGive your business an advantage over competitors who are drowning in meaningless data. Learn more about which KPIs you need to track for your distribution business.\u00a0 Download the white paper from Acumatica now.<\/p>\n<p>Parallel Solutions has been helping distribution organizations since 1995.\u00a0 Have a question for our distribution experts? Call us at\u00a0<strong>440-498-9920<\/strong>\u00a0or email us at\u00a0<strong>sales@parallelsolutions4u.com<\/strong>.<\/p>\n<p><strong>Also read:<\/strong><br \/>\n5 Steps to Modernize Your Distribution Operations<br \/>\nGovernment Compliance Management Simplified&#8230;for Distributors<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Lorem Ipsum is simply dummy text of the printing and typesetting industry. 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