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.