Acumatica Helps You Track Vital Distribution KPIs

Acumatica cloud ERP packs plenty of power into its software, but one area in which it excels is helping you track distribution KPIs. A new white paper offers a closer look at distribution KPIs and other KPIs and how Acumatica makes it easy to track them.

All manufacturers are, in a sense, wholesale distributors. The products you make often go on to another company to be fabricated into a finished item offered for sale. Tracking, measuring, and reporting on various KPIs is an integral aspect of your business, both to comply with regulatory and accounting functions and to ensure you’re measuring what’s most important to business success.

Distribution KPIs offer companies vital metrics to measure both the timeliness and effectiveness of warehouse and distribution teams. By tracking the flow of goods from the manufacturing floor to the end customer, you can assess how quickly they arrive and in what condition and set the bar for improvements in the future.

Acumatica’s Dashboards: Distribution KPIs and Workflow

The distribution flow dashboard in Acumatica helps you see the big picture of how work moves from one area of your business to another. It can be set up to show distribution KPIs, and you can monitor every single point of the distribution network from the visual dashboard.

What are some vital distribution KPIs to measure?

  • Inventory turnover: The rate at which inventory turns is an important KPI. Each item in your warehouse represents a cost, and the faster you can sell and turn over inventory, the faster you can recoup those costs and gain a profit. Acumatica’s distribution KPI dashboard visually depicts, in an easy to read bar graph, the items with low turnover as well as high turnover (and you can always change the parameters to see other items, too.) Once identified, you can improve items with low inventory turnover.
  • On-time shipping ratio: Another valuable distribution metric to track is the on-time shipping ratio. This ratio tells you the on-time shipments and can be tracked by warehouse or by location as needed. Because the information displays in a handy graph, it’s easy to see at a glance if shipping times improve or decline.
  • Profitability by item: A third distribution KPI that may provide valuable insight into your business is the profitability by item. As the name implies, it helps you assess via the Acumatica dashboard how much your company makes per item. It considers all the factors that lead to profitability, including wholesale cost, discounts, and more. It’s a helpful metric because not all expensive items are profitable, for example. An item with a high retail price point may have had a high wholesale price, too, which in turn makes it less valuable than a similar item with a lower retail price point but a very low wholesale cost. Establishing KPIs for profitability, then comparing actual profitability stats to the goals can help you see if your company is improving over time.

Acumatica Distribution Management Software

Acumatica Distribution Management Software offers a cloud-based method that’s user-friendly, flexible, and highly customizable. You can set up your own KPIs to measure or use suggested ones. You can also establish roles and build dashboards to reflect user preferences, making it easy for each person to see what is most useful for their job performance.

The system links to the warehouse, shipping information, and more so you can track every aspect of distribution management. The dashboard becomes the starting point for a powerful influx of data and information that can be used throughout the distribution system.

Tracking KPIs across your company can become an integral part of your business. With the right software in place, busy managers will find it easy to access the information they need to improve every aspect of your manufacturing company.

Download the White Paper

Learn more about distribution KPIs and the impact that Acumatica Distribution Management Software can make on your business. Download the free white paper today.

Emerald TC

Emerald TC provides software and consulting for distribution and manufacturing companies. We can help you choose the right ERP system for your needs and offer Acumatica and other software packages for every type and size company. Contact us or call 678-456-6919 for more information.

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