Why is Distribution Performance Management Important?

distribution performance

Table of Contents

Distributor performance is a report that is viewed on a per-entity or per-area basis. Performance can be measured with a Key Performance Indicator (KPI) which is adjusted to the needs of the company/principal. The aim is to ensure the Principal’s business objectives for a certain period are aligned with the target of its distribution network.

KPI metrics can be viewed from various angles, from customer service reports, sales order rates, delivery rates, etc.

I. Why do companies need distribution performance

Based on a McKinsey study on several principal companies in Indonesia, companies with better financial performance (winning companies) carry out performance reviews more frequently than other companies, with a focus on Return On Investment (ROI), sales performance, and outlet coverage. This data can also be the basis for the implementation of quarterly/annual joint sales planning carried out by all winning companies.

II. Integrated performance distributor technology

With the importance of distributor KPI metrics and the massive amount of data required, all data obtained from various sources must be integrated so that they can be analyzed as quickly as possible to identify if there is a delay or a drastic change in company performance.

Many companies have implemented a performance review system but the process is still performed manually and not integrated. This causes individual targets not lined up with the objectives of business strategy, unclear accountability, inefficient allocation of resources, even causes the lengthy and time-consuming process of analyzing reports to identify problems.

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III. Advotics Supply Chain SaaS

Advotics helps companies to improve transparency and the ability of employees and management to manage the supply chain by transforming reporting data into a business strategy to improve overall company performance.

IV. Workgroup Performance at Advotics Dashboard

Distributor performance management at Advotics can be monitored with the Workgroup Performance feature. Through this feature, you can compare information related to the performance of each workgroup in your company. If you are a principal company, the workgroup can be set as a distributor per area, whereas if you are a distributor, the workgroup can indicate the salesman group per area.

Trackable metrics:

    • Visit: number of total salesman visits
    • Average working duration: the average duration of working hour
    • Average travel time: the average time required to travel between stores
    • Average visit duration: the average duration of visit per store 
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    • store coverage: comparison of shops visited and total stores listed
    • PJP: comparison of journey plan visits and visits made
    • visit to EC: effective call ratio, comparison between visits made and visits that generate sales orders

Advotics dashboard can also compare the performance of each of the same workgroups in different periods. Green indicates a positive improvement while red is negative. With this, management can now adjust business strategies according to accurate data in the field.

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