Distribution Analytics Boost Productivity

How Distributors Can Use Analytics to Increase Productivity

Distribution changed.

The combination of new entries – local and international – into the market and greater retail expectations means there is enormous pressure on distributors to improve performance.

Even with all these changes, the distribution margin has not increased. In contrast, distributors have the same budget for carrying out new and increasingly complex tasks. Therefore, to maintain competitiveness, distributors must innovate to direct client expectations. Increasing productivity and leveraging existing resources is the only solution.

But how do you distributors do that? Distributors use analytics.

Continue reading to learn how distribution companies can increase productivity using analytics.

Five Ways Distributors Can Use Analytics to Boost Productivity

Effective use of analytics is a key outcome of the digital transformation process. Start by creating a roadmap to put you on the path to success.

1. Align Team Functions and Goals

Just like how machines require each component to depend on the others to function, distribution centers require teamwork.

However, in distribution, collaboration is more important for business functions than in other industries. Tasks will stall if teams don’t leverage each other’s services, resources, insights, or data. That’s where analytics is a welcome reprieve.

Analytics can help you as a distributor, bringing your team together by giving them insight into what components are part of the broken chain. You can then work as a team, using this analytics to address flaws, create solutions, and monitor progress.

Teams will also feel more compelled to improve performance if they see their teamwork measured through analytics.

2. Track Underperforming Teams and Processes

Sometimes the problem is not a lack of teamwork but an inefficient team.

If your team – or members on a team – don’t meet their KPIs, team results will decline.

Before an unproductive team starts costing your company millions in lost revenue due to avoidable mistakes and missed opportunities, ask yourself who – or which team – is your weakest link and how to fix it? You cannot rely on self-reporting or management. On the other hand, analytics is essential for tracking KPIs.

Therefore, when assessing team analysis – and the members within those teams – you can spot underperforming teams and members, reduce further losses, and make changes to advance team performance.

3. Find Redundant Processes

Process redundancy is the number one channel for finance and resources. They are also one of the easiest elements to get rid of.

However, it is often difficult to determine which processes are redundant, given the number of moving parts in the distribution.

Therefore, having ERP software helps you separate each process, and then you can track those processes to determine how efficient they are in achieving KPIs. Processes that consistently underperform even when those running the task are performing are processes you should delete.

4. Optimize Your Supply Chain

Without analytics, your distribution center is just a warehouse.

Analytics lets you make smart decisions about how you choose to use people, expertise, space, time, and equipment to speed up your lead time, reduce returns, and manage manufacturer relationships.

Because analytics tie together every step of the process, you can follow the journey from manufacturer to retail client to end user. You can see how each process is interrelated and track how a single success or failure in a process affects the supply chain, and create strategies to replicate successes and reduce failures.

5. Simplify and Speed Up Your Process

In addition to removing redundant processes, you can streamline existing processes; a process that is important for distribution but drains resources or finances. Analytics can help you find bottlenecks in critical activities, such as manufacturers reporting delays, retail clients reporting defective stock, and internal reporting.

Your analytics will track these interactions and determine what is preventing these activities from achieving timely – and cost-effective resolutions.

Analytics also helps you better visualize processes by tracking the steps producers, clients and employees take to achieve specific results. Having this visualization allows you to determine what steps you can take to speed up the process, to achieve your results faster and more efficiently.

Predictive Analytics

In addition to assessing processes after the fact, you can leverage predictive analytics to achieve optimal productivity before problems arise. Predictive analytics allows you to determine which processes – based on statistics and data mining – will perform poorly. With this information, you can devise strategies to reduce worries before they arise. Basically, predictive analytics allows you to keep your distribution center and supply chain running without any disruption.

However, to access all of these benefits, you need software that gives you access to those analytics. ERP software is a comprehensive tool that allows you to track internal and external indicators to improve your supply chain management.