Top KPIs to monitor distribution performance

Thanks to the new sales force automation enabling to collect granular data, consumer goods distribution is becoming more and more data-driven. As such, it can be managed more scientifically, thanks to the use of the right KPIs. Defining the right KPIs to measure and ensure you are measuring them well and consistently represents a key success factor in a successful commercial activity. Below is a list of KPIs that can be useful to track the performance, as a reference. Pick the ones that make sense based on your sector/activity.

Field Force Visit:

  • Daily visits (calls) per sales representative = total number of visits / total working days

  • Client coverage (%) = Nbr. of client visited / total number of clients in portfolio

  • Number of unique clients visited

  • Visit frequency = average number of visits by client or client type

  • Numerical distribution (%) = Nbr of shops with brand — category — product presence / total number of shops

  • Work duration = Duration between Check-in at first Call and Check-out at last Call

  • Instore work duration = Duration between Check-in and Check-out in the store

  • Total Instore duration = Sum of all the Instore Work Duration (in general for a specific day and a specific rep)

  • Transport duration = Difference between last Check-out and new Check-in

  • Total Transport duration = Sum of all the Transport Duration (in general for a specific day and a specific rep)

  • Route compliance or route adherence (%) = Nbr. of clients visited on the route / number of clients on the route. This metric assesses the extent to which the sales reps or merchandisers adhere to their responsibilities. It should encompass a route planner equipped with calendar scheduling capabilities to assist field workers in organizing their visits, monitoring unattended appointments, and creating compliance reports. Additionally, it should feature a navigational map, the ability to track check-in and check-out times, and a system to map the locations of merchandisers.

  • Average working start / end time

  • Average time spent per store

  • Distance moved

Field Sales:

  • Strike rate. % of visit with sales

  • Sales value per day per sales representative

  • Lines per productive calls. Number of products sold per visit

  • Number of active sales representatives

  • Number of calls (= visits with a sales)

  • Drop size = sales value / number of sales

  • Total quantity sold (drill down by product category / item)

  • Total value sold (drill down by product category / item)

  • Frequency of purchase

Vendor sales:

  • Sales value per day per vendor

  • Asset utilization

  • Working days

  • Attendance / Churn

Stock / Warehouse:

  • Number of crates / boxes

  • % of stock by expiry date (in case of perishable stock)

  • Stock level per distributor / warehouse

  • % of stock in damaged state (returned)

  • Each of these analytics can be drilled down per product category, brand, etc

Financial statement:

  • % of sales per payment type

  • Bad debt level

Merchandising

  • On Shelf Availability (OSA) : It quantitatively evaluates how fully the assortment matrix of the brand SKUs is represented at a sales point, particularly those products visible on the shelf. Essentially, it's a metric of product visibility. OSA is expressed in percentages, spanning from 0 to 100, where 0% indicates that none of the products from the matrix are present on the shelf, and 100% signifies that every item from the matrix is available on the shelf.

  • Out of Stock (OOS): Also known as stock out, This occurs when a retail location lacks certain products or categories on its shelves, making them unavailable for purchase by customers. The key concern in this context is the visibility of products. A Stockout effectively signifies that there is 0% on-shelf availability for the items in question.

  • Number of facings

  • Share of Shelf (SoS) refers to the proportion of shelf space dedicated to the brand products within a certain category, relative to the space given to competitor brands' products on the same shelf within that category. The calculation is category-specific rather than being aggregated across different categories. It represents the extent to which the brand occupy the shelf space in a particular category inside a store.

  • Each of these analytics can be drilled down per product category, brand, etc

Branding:

  • Point of Sales Material Survey (POSM): This is a review of the sales support materials provided and exhibited in stores, which play a part in the brand strategy to enhance product visibility. It offers a distinct tally of specified point-of-sale materials (POSM), such as beach umbrellas, display stands, display hangers, and so on.

  • % of shops with a presence of POPM out of total number of shops

  • Quality of the POPM seen (new, fair, poor)

Sales Assets (such as fridges, kiosks, etc)

  • Number of assets seen in the trade

  • % of shops with a presence of assets out of the total number of shops

  • Utilization rate (sales per asset)

  • Quality of the assets seen (new, fair, poor)

A few considerations:

  • Ideally, all these KPIs should be measured against targets.

  • Each of this KPI can be measured at different levels: National; regional and lower hierarchical levels; team; per type of trade channel, such as supermarkets, Horeca, etc.

  • Focus only on a few KPIs to track

  • Ensure everyone is aligned on the KPI definition

  • Share the KPI regularly to all the stakeholders through the relevant communication channel, email, mobile and web app

If you are interested in a solution to help you collect and track those KPIs, get in touch with us. Visit our new website fieldproapp.com or write to [email protected]

Do you want to discover more? Read our article about How to measure Field Force Productivity as a Pro

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