Strategic KPI’s for Distribution Growth - Financial
There are thousands of facets of your distribution business that can be monitored and adjusted to drive improvement and grow success. It can be overwhelming to keep track of every metric - work smarter by focusing on the crucial components that will grow your business strategically.
In this 4 part series of blog posts we will be highlighting the Key Performance Indicators that successful distributors use to grow their business strategically. In this blog we will take a look at financial KPI’s.
Financial KPI’s for Distributors
Revenue and Profit:
Revenue is a lagging indicator benchmarked against sales projections and adjusted for seasonality and promotions. These metrics support topline KPIs such as operating cash flow, profit and loss, and working capital.
Costs:
Costs should be categorized and analyzed carefully. Cost categories include inventory purchase costs, labor, shipping and transportation, packaging, warehouse and operations overhead, and returns.
Cash Flow:
Cash flow is vital for distributors who often purchase inventory months before actual customer demand. Operating Cash Flow metrics rely on accurate net income calculations, non-cash expenses, working capital, and receivable collections.
Acumatica ERP’s Distribution Solution is fully integrated with manufacturing, accounting and CRM putting all your KPI’s at your fingertips with anywhere anytime access.
Take a deeper dive…
Dive into Acumatica’s eBook Distribution Metrics That Really Matter for more information about strategic Distribution KPI’s and metrics.
Implement Acumatica ERP with Hudson River Computing to optimize your business operations and grow your success.
A successful business starts with a successful business solution - trust us to deliver the ERP system your distribution needs. Please reach out to us with any questions or to set up a free demo. Contact us here.