VERNO’S

Wholesaler Tools

Key Operating Indicators

Many wholesalers struggle with developing an effective Key Operating Indicator (KOI) system. These wholesalers are often times too concerned with automating the system rather than getting the KOIs in place, even if it means having to report them manually on excel spreadsheets. Verno Consulting has the benefit of working with many wholesalers who we consider world class; yet, most of these wholesalers have struggled to significantly automate their KOI reporting system.

Below are some of the essential KOIs that every wholesaler should consider tracking to measure the effectiveness of each of the departments.

Super Merch Sales Model

VERNO'S Key Performance Indicators Super Merch Sales Model Store-Specific Measures Time required to get store up to full program execution (number of days) Number of secondary displays sold Store sales volume compared to base period Percentage of beer on the floor...

Sales PFP Objectives

VERNO'S Key Performance IndicatorsSales PFP ObjectivesOrder Builder KPIs Sales objective attainment rate By rep By sales supervisor team By sales manager team (on-premise, grocery, c-store, etc.) By supplier manager By brand/supplier  PFP dollars paid out (as % of PFP...

Warehouse Order Builder

VERNO'S Key Operating IndicatorsWarehouse Order BuilderOrder Builder KOIs Cases picked per hour Number of orders with errors (we like number of orders picked incorrectly rather than number of cases picked incorrectly) Orders with errors  Not on truck  Number of cases...

Super Merch

VERNO'S Key Operating IndicatorsSuper Merch Sales ModelSuper Merch KOIsStore-Specific Measures: Time required to get store up to full program execution (number of days) Number of secondary displays sold Store sales volume compared to base period Percentage of beer on...

Sales Practices to Increase WSE Productivity

VERNO'S Key Operating IndicatorsSales Practices that Improve Warehouse ProductivitySales and Warehouse Productivity KOIsKOIs featured in Verno’s Beer Brief, “Improving Employee Retention” (January 2020) Number of orders and cases that missed the order cut-off time...

Employee Retention

VERNO'S Key Operating IndicatorsEmployee RetentionRetention/Turnover KOIsKOIs featured in Verno’s Beer Brief, “Improving Employee Retention” (February 2019) Turnover by department Number of Applications received Applicants offered employment Applicants accepting vs...

Financial

VERNO'S Key Operating IndicatorsFinancialFinancial KOIs Breakeven cases and dollars per stop Fixed charge ratio Debt to EBITDA Total OT dollars Total payroll cost per case Gross margin per case and stop OOC as percent of sales dollars or GP dollars Account receivables...

Delivery

VERNO'S Key Operating IndicatorsDeliveryDelivery KOIs Average delivery stops per account per week Cases per stop per route Number of off day deliveries Number of hot shots Total miles driven vs. plan Number of delivery days below 7 hours Number of delivery days above...

Craft Sales

VERNO'S Key Operating IndicatorsCraft SalesCraft Sales KOIs Craft distribution vs. plan Craft sales volume versus plan Craft gross profit vs. plan Number of new craft package placements Number of new craft draft placements Revenue growth in accounts that craft...

Length of the Workday

VERNO'S Key Operating IndicatorsLength of the WorkdayLength of the Workday KOIsGeneral KOIs Overtime hours and dollars By function/department Total company Number of long workdays (number of workdays that exceed the targeted workday by more than one hour) By...

Tel-Sell Draft

VERNO'S Key Operating IndicatorsTel-Sell DraftTel-Sell KOIs Number of draft handles now versus the baseline Percent of draft handles retained Number of new placements Competitive handles taken Replacing wholesaler’s own draft brands Number of in-person calls made to...

Sales Reps

VERNO'S Key Operating IndicatorsSales RepsSales Rep KOIsSales Rep Execution Sales volume versus goal (by key suppliers and/or major product groups) Product distribution versus goal Retail execution standard audit scores in A and B (B and U) accounts Out-of-code beer...

Key Account Managers

VERNO'S Key Operating IndicatorsKey Account ManagersKey Account Manager KOIs Actual sales CE, dollars, or gross profit versus plan in the KAM’s assigned chains Wholesaler’s share of ads/features versus the competition Wholesaler’s share of displays versus the...

Delivery Minimums

VERNO'S Key Operating IndicatorsDelivery MinimumsDelivery Minimum KOIs Total number of deliveries made this period this year versus the same period last year Number of orders below the minimum On Off Package only Draft Number of accounts abusing the delivery minimum...

Brand Management

VERNO'S Key Operating IndicatorsBrand ManagementBrand Management KPIs Number of craft SKUs Added this month Deleted this month Number of SKUs selling less than 15 CE this month Marketing cents per case vs. goal by brand manager for the assigned brands OOC CE for craft...

Supplier Management Systems

Managing suppliers to grow sales, properly utilize resources and be a great partner is a key function of every wholesaler.

How to Implement KOIs

If a department manager or one of his or his subordinates has to spend 15 minutes a day inputting data into a KOI spreadsheet this is time well spent. The department manager will be more on top of the business and will see the KOIs in real time. Upper level management will be able to judge key performance criteria when they receive the KOI rollup.

Long-term development efforts by route accounting providers and wholesaler IT departments still need to be made to automate as much of the KOI process as possible. While this development process is taking place, wholesalers can still manually generate KOIs. When the KOIs are eventually automated, the managers who had previously inputted the data manually into the KOI spreadsheets will have a better understanding of each KOI being generated automatically and will know how to manage with the automated KOI information.

How effective are your company's KOIs?

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