What metrics should you track for food distribution management?

1 On-time delivery rate

One of the most important metrics for food distribution management is the on-time delivery rate, which measures the percentage of orders that are delivered within the agreed time window. This metric indicates how well you are meeting your customer expectations and how reliable your distribution network is. A high on-time delivery rate can enhance your customer satisfaction, loyalty, and retention, as well as reduce the risk of penalties, complaints, and lost sales. To improve your on-time delivery rate, you need to monitor your inventory levels, transportation routes, traffic conditions, weather patterns, and delivery drivers.

2 Fill rate

Another essential metric for food distribution management is the fill rate, which measures the percentage of orders that are fulfilled with the requested quantity and quality of products. This metric indicates how well you are managing your inventory and demand planning, as well as how consistent your product quality is. A high fill rate can reduce your inventory costs, wastage, and spoilage, as well as increase your customer satisfaction and revenue. To improve your fill rate, you need to forecast your demand accurately, replenish your inventory regularly, track your product shelf life, and inspect your product quality.

3 Distribution cost

A third critical metric for food distribution management is the distribution cost, which measures the total amount of money spent on transporting, storing, and handling food products. This metric indicates how efficient and profitable your distribution operations are, as well as how competitive your pricing strategy is. A low distribution cost can improve your margins, cash flow, and market share, as well as enable you to offer lower prices to your customers. To reduce your distribution cost, you need to optimize your distribution network, negotiate with your suppliers and carriers, automate your processes, and implement lean practices.

4 Customer service level

A fourth important metric for food distribution management is the customer service level, which measures the percentage of orders that are delivered in full and on time, without any errors or damages. This metric indicates how well you are satisfying your customer needs and expectations, as well as how effective your distribution processes and systems are. A high customer service level can boost your customer trust, loyalty, and referrals, as well as increase your market share and reputation. To increase your customer service level, you need to communicate with your customers clearly, resolve any issues promptly, provide tracking information, and collect feedback.

5 Carbon footprint

A fifth relevant metric for food distribution management is the carbon footprint, which measures the amount of greenhouse gas emissions generated by your distribution activities. This metric indicates how environmentally responsible and sustainable your distribution practices are, as well as how compliant you are with the regulatory and social standards. A low carbon footprint can reduce your environmental impact, operational costs, and legal risks, as well as enhance your brand image and customer loyalty. To lower your carbon footprint, you need to use fuel-efficient vehicles, optimize your routes and loads, reduce your packaging and waste, and source your products locally.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?