The distribution business is one of the rare instances where the phrase “if you are not getting better, then you are getting worse” applies. The sales per employee is growing faster than the gross margin dollars per employee. The variety of available products is growing each year, resulting in more parts to be stocked. Non-traditional competitors are entering markets via Google and squeezing prices, but customers still expect their orders to be fulfilled accurately and promptly. It is a great industry for a coordinated team who enjoys the challenge and are committed to staying out in front of the pack. How do you know if you are keeping pace with the evolution of the market?
HARDI’s annual benchmarking analysis program Distributor Performance Dashboards (DPD) powered by CoMetrics allows members to compare their performance versus others. This is our first year with CoMetrics, who has 20 years of experience delivering benchmarking analysis. If you have participated with DPD any of the past few years, that historic data will be available for you to see. There are also other meaningful enhancements this year with our shift to CoMetrics.
Multiple members at a participant company can have access with their own log-in and password. The innovative presentation is crisp, allowing performance gaps or opportunities to be easily identified. Participant’s historic data will persist, allowing a valuable additional layer of performance for consistent participants. The data is easy to print or export to Excel. And there is an additional intriguing view that helps answer that question, “how do you measure up?”
CoMetrics has developed the CoScore that quantifies a participant’s performance. It is a weighted average of various key performance indicators. The components of HARDI’s CoScore were developed in conjunction with the Management Methods Committee and consist of the following:
– Personnel Productivity Ratio
– Gross Profit $ Per FTE
– Average Lines Per Order
– Average Collection Period
– Growth Potential Index
– Sales Growth
The CoScore performance is presented on an anonymous participant scatter diagram. We are very intrigued to see the result of this analysis and hear about the debates it inspires. We hope to have at least 100 distributors participating this year for a robust CoScore picture of performance.
The survey is now available with completed versions due April 30. I identified two members from each distributor to receive an e-mail from CoMetrics on April 3 that had a unique user name and initial temporary password. Please contact me directly if you would like to participate and learn your CoScore but have not received an e-mail with this material. I can change or add access contacts at any time.
Your performance vs comparable median member performance will be available May 22. Then members can begin debating their CoScore, analyzing their performance and decide which operating ratios they will target for improvement. Participate again next year to compare your annual progress, and your new CoScore. We are very pleased to be working with the dedicated professionals from CoMetrics and offering this wonderful service that will help keep HARDI distributor members out front in the race for efficiency.