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The KPI's an Industrial Distributor Should Measure

In this competitive market, industrial distributors need to know how they're doing, down to the granular level. They should also know how they compare to similar companies in their industry.

Tribute's ERP software designed specifically for industrial distributors, TrulinX, helps you determine the state of your business with a wide variety of tools and reports to give you the up-to-date information you need.

By measuring key performance indicators (KPIs), you can benchmark your company with similar companies, watch your company's performance over time, establish triggers for staffing, and quantify where you're going.

TrulinX allows you to keep on top of your business with the tools and reporting to obtain critical KPIs.

TrulinX helps you measure these critical profit variables:

  • Gross Margin Percentage - Reflects the ability to manage pricing and COGS effectively
  • Operating Expense Ratio - Measures ratio of Operating Expense per Net Sales
  • Sales per Employee - Measures sales generated per full-time employee (employee productivity)
  • Inventory Turnover - Measures the number of times the entire inventory stock is sold per year
  • Average A/R Collection Period (Days) - Reflects accounts receivable collection practices
  • Sales Change % - from year to year

Additional KPIs that can be tracked in TrulinX:

  • Return on Net Worth - Measures profit earned as a percent of net worth
  • Profit Margin - Measures profit earned as a percentage of net sales
  • Sales to Inventory Ratio - Measures dollar sales generated per dollar of inventory
  • Gross Margin Return on Inventory - Measures gross margin earned per dollar of inventory
  • Typical Sales Volume - Where does your sales come from?
  • Gross Margins - Average of the past 12 months of sales

Monitor these important metrics in TrulinX:

  • Inventory Value by month and trends over time
  • Customer Service Level
  • On Time Shipments
  • Vendor Service Levels
  • Lead Time Accuracy on new items
  • Accuracy of Release Days and warehouse efficiency by location
  • Quotes Never Converted to Sales Orders
  • Excess Inventory Allocation
  • Lost Sales

Check out industry trends and how your company compares to those in the same industry by using data provided by the following trade associations:

  • AHTD - The Association of High Technology Distributors
  • FPDA Motion & Control Network
  • ISD - The International Sealing Distribution Association
  • MCAA - The Measurement, Control and Automation Association
  • NAHAD - The Association for Hose and Accessories Distribution
  • NFPA - National Fluid Power Association

Tribute, Inc. has been serving industrial distributors for over 35 years and truly understands what they need to service their customers at a superior level in this demanding market.  For more information on TrulinX and how it can benefit your business, visit www.tribute.com

 

Author

Nina Baker