Distribution Metrics - Key KPIs for Distributors

Why Distribution Metrics Matter

In distribution, the difference between staying ahead and falling behind often comes down to visibility. Important distribution metrics give you a clear view of inventory, fulfillment accuracy, and overall financial health.

They can reveal problems like out of stock items, poor inventory management, or inefficient service level agreements before they affect customers. When key metrics and other metrics are connected through one system, decision-making becomes faster, more accurate, and more proactive.

By using metrics explorer dashboards and ERP reporting tools, warehouse managers can monitor performance trends, optimize stock levels, and protect both customer relationships and profit margins.

Key Distribution Metrics to Track

Not all numbers tell the full story. The right metrics help distributors understand how products are moving, where costs are accumulating, and what’s driving customer satisfaction across multiple fulfillment centers.

1. Inventory Turnover

Inventory turnover shows how quickly stock sells and is replaced. A strong turnover rate indicates healthy demand and lean operations. Low turnover may signal overstocking or poor inventory management.

When connected with historical data, inventory turnover helps warehouse managers keep stock levels aligned with customer demand and avoid costly carrying issues.

2. Fill Rate

Fill rate measures the percentage of customer orders shipped in full and on time. This is one of the most important distribution metrics, especially for fulfillment centers and ecommerce businesses.

High fill rates improve service level agreements and keep customers coming back. Low fill rates can highlight bottlenecks in supply, picking, or shipping.

3. Order Accuracy

Order accuracy tracks the percentage of shipments delivered exactly as ordered. Mistakes here lead to returns, rework, and frustrated customers.

Monitoring this metric closely allows teams to identify root causes in picking, packing, or system workflows and resolve them early.

4. Days Sales Outstanding (DSO)

DSO measures how long it takes to collect payment after a sale. Lower DSO means stronger cash flow and better overall financial health.

By tying DSO to other metrics like inventory turnover and number of orders, distributors get a clearer view of working capital and performance.

5. Gross Margin Return on Investment (GMROI)

GMROI evaluates how much profit is generated per dollar of inventory investment. It’s a powerful KPI for balancing profitability and total inventory.

Analyzing this metric with historical data allows better forecasting and more strategic purchasing decisions.

6. Perfect Order Rate

Perfect order rate measures how many orders are delivered on time, complete, and error-free. This KPI is key for warehouse managers, fulfillment center operators, and ecommerce businesses that depend on high service quality.

Improving this metric strengthens customer trust and ensures service level agreements are consistently met.

7. Carrying Cost of Inventory

Carrying cost shows how much it costs to hold inventory—including storage, insurance, depreciation, and capital costs.

Tracking this alongside average storage cost, inventory, and stock levels helps avoid waste and increase profitability.

8. Number of Orders

The number of orders processed is a critical operational metric. Tracking volume trends helps warehouse managers allocate labor, manage workflows, and keep fulfillment on pace with demand.

This metric also provides valuable insight for content marketing strategies and seasonal planning.

9. Out of Stock Items

Out of stock items impact fill rate, customer satisfaction, and profitability. By tracking this metric in real time, distributors can adjust purchasing decisions, tighten service level agreements, and keep customer orders on track.

Turning Metrics into Action

Collecting numbers is easy—acting on them is what creates real change.
But when key performance indicators and other distribution metrics live in scattered spreadsheets or siloed systems, teams lose visibility, and decisions slow down.

With Acumatica’s cloud ERP platform, data comes together in one place. Real-time reporting, configurable dashboards, and automated workflows turn raw numbers into actionable insights your entire team can use.

When inventory turns are slipping, fill rates drop, or out of stock items climb, you won’t find out weeks later. You’ll see it in real time—so operations can act fast.

This level of visibility helps distributors:

• Spot issues in inventory, fulfillment, and cash flow before they grow.

• Identify which areas are profitable and which need tightening.

• Use historical data to plan smarter and reduce costly surprises.

• Align warehouse, sales, and finance around shared metrics.

Turning metrics into action isn’t about more data. It’s about getting the right data to the right people at the right time—so problems don’t linger and opportunities aren’t missed.

How Acumatica Cloud ERP Supports Distribution Metrics

Acumatica isn’t just another reporting tool—it’s a connected ERP system that gives distributors a full, real-time view of inventory, stock levels, order fulfillment, and financial performance.

Instead of pulling reports from multiple platforms, your entire organization works from one connected source of truth.

With Acumatica, distributors can:

• Track key metrics and KPIs across multiple distribution centers and fulfillment centers in real time.

• Use historical data and metrics explorer dashboards to forecast demand more accurately.

• Manage out of stock items and stock levels proactively instead of reacting after the fact.

• Strengthen service level agreements through better visibility into fulfillment performance.

• Improve financial health with clear insight into carrying costs, DSO, and order volume.

• Support ecommerce operations with connected reporting, automation, and workflows.

Acumatica also provides built-in intelligence like role-based dashboards, mobile access, and automated alerts that surface critical issues the moment they happen—not after they’ve already impacted customers or margins.

This gives leadership, operations, and finance a shared view of performance—so decisions are faster, smarter, and more strategic.

Build a Smarter Distribution Strategy with Real-Time Metrics

Distribution isn’t just about getting product from point A to point B.
It’s about doing it efficiently, profitably, and with predictable results.

The right distribution metrics make that possible. By tracking the health of inventory, orders, and financial performance in real time, distributors gain the insight they need to operate with confidence.

With Acumatica Cloud ERP, your team can:

• See what’s happening in every corner of the operation.

• Forecast with accuracy, using key performance indicators tied to actual data.

• Eliminate blind spots caused by spreadsheets and disconnected systems.

• Plan for growth with metrics that support strategic decision-making.

From total inventory to financial performance, Acumatica transforms raw data into a clear picture of your business—so you can act faster, reduce risk, and keep your operations moving smoothly.

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