The KPIs High-Growth Beverage Distributors Measure (And How to Actually Track Them)

Our Speakers Today…
Wes Verno
Verno Consulting
Adam Burke
Nowsight

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JOE VERNO | 303.807.5176
JOEVERNO@VERNOCONSULTING.COM
WES VERNO | 303.718.7849
WESVERNO@VERNOCONSULTING.COM
THE 5 KPIS TO ADD TO YOUR
MANAGEMENT ROUTINE
OCTOBER 19, 2017

WWW.VERNO-CONSULTING.COM©2017 VERNO CONSULTING, LLC.
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KPI CONCEPTS
➢ You can’t improve what you don’t measure
➢ Only measure what is really important to you
➢ What is important to you (executive team) will be important to the rest of the
company
● Incorporate key measurements into daily conversations and management meetings
➢ Management by exception – dashboard concept

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2018 ANNUAL PLANNING THEMES
➢ Control what we can control
➢ Build reasonable workloads
● Hours, cases, stops, etc.
● Balance the work – reduce peaks and valleys
➢ Stabilize the staffing
➢ Less is more – realign focus and reduce distractions
● Core suppliers & products, key accounts, special events, business strategies, etc.
➢ Right amount of service to each customer

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1) DELIVERY STOP PROFITABILITY
GP $ / Stop =
Total GP $
# of Stops
• Increase price of existing products
• Sell more volume
• Sell higher priced product (change the
mix)
• Decrease the # of stops
KPI # 1 Gross Profit $ / Stop

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STOP PROFITABILITY – DRILL DOWN
Drill down KPIs if GP $ / Stop is less than goal
➢ Gross Profit vs. Plan
● Soft sales? Margin loss from discounting or fire sales? Changing mix?
➢ Total # of Actual Stops vs. Scheduled Stops
● Are we making more deliveries than we planned on?
➢ # of Off Day Deliveries
● Unaccounted for additional stops
➢ # of Deliveries Below $200
● Small deliveries negatively impact GP $ / Stop

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2) LENGTH OF ROUTE DAY
➢ Target 8 hours / day for delivery routes (5 day delivery schedule)
➢ Why this is important?
● CDL shortage
● Need to make the job as attractive as possible
⎼ Both long and short days are negative in the eye of the driver
⎼ Drivers value consistency
⎼ Delivering beer is hard work, you can not overwork the drivers and expect them to
stay
KPI #2
1) Short Delivery Days - # of Routes Less Than 7 Hours / Day
2) Long Delivery Days - # of Routes More Than 9 Hours / Day

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LENGTH OF ROUTE DAY – DRILL DOWN
Drill down KPIs for Long & Short Route Days
➢ Long and Short Route Days by Route by Day of the Week
● Are drivers experiencing long or short route days on the same days of the week each
week?
⎼ Short Routes: Condense routes, eliminate individual route days, switch some routes
to 4-day routes
⎼ Long Routes: Move volume from long route to shorter route
➢ Balancing the Work Load:
● Volume Delivered by Day of the Week
⎼ Smooth the volume across the days of the week
● Delivery Stops by Day of the Week
⎼ High stops low volume can be a harder day than a high volume day

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3) LOW VOLUME SKUS
➢ Too many SKUs dilutes the entire supply chain
● Receiving, Replenishment, Counting, Sales focus, Picking, Delivering, Merchandising, Ordering
➢ Common misnomer – you do not lose the volume and GP $ from SKUs you
discontinue
● You replace the low performing SKUs with more productive SKUs
***The best way to manage SKUs is to be more selective up front***
KPI #3
1) Total # of Package SKUs with Less than 30 CE of Sales Over the Last
30 Days
2) Total # of Draft SKUs with Less than 20 CE of Sales Over the Last 30
Days

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LOW VOLUME SKUS – DRILL DOWN
➢ Drill Down by SKU
● Gross Profit $ Sold
● CE Sold
● Active Points of Distribution
● CE of Inventory on the Floor in the Warehouse
➢ SKU Management Process
● Meet quarterly to review SKUs
⎼ The fewer people involved the better
● Generate a SKU report with the above data per SKU. Distribute the report to the SKU
management meeting members 1 week before the meeting
⎼ Only send the data for the SKUs that fall below your company’s threshold
● The assumption should be that every SKU on the list is going to be deleted unless the
business case can be made to keep the SKU

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4) TEL-SELL MANAGEMENT
➢ Wholesalers are expanding tel-sell
● Up to 5% of total volume
● Potentially the largest on premise route in the company
➢ You can not afford to over-service the tel-sell accounts and accomplish
everything else in the rest of the market you want to do.
● Must manage delivery frequency in these accounts
KPI #4 Avg. CE / Order in Tel-Sell Accounts

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TEL-SELL MANAGEMENT – DRILL DOWN
Additional Tel-Sell Management KPIs
➢ # of Off Day Deliveries in Tel-Sell Accounts
➢ # of Orders Below $200 in Tel-Sell Accounts
● Are accounts getting extra deliveries?
➢ Calls to Order Ratio
● Are we calling accounts too frequently?

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5) OUT OF CODE
KPI #5 OOC $ as a % of Net Sales

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OUT OF CODE – DRILL DOWN
➢ OOC $ by Sales Rep
● Rolled up into Sales Supervisor
➢ OOC $ from Warehouse

16
THE 5 KPIS TO ADD TO YOUR
MANAGEMENT ROUTINE
KPI # 1 Gross Profit $ / Stop
KPI #2
1) Short Delivery Days - # of Routes Less Than 7 Hours / Day
2) Long Delivery Days - # of Routes More Than 9 Hours / Day
KPI #3
1) Total # of Package SKUs with Less than 30 CE of Sales Over the Last
30 Days
2) Total # of Draft SKUs with Less than 20 CE of Sales Over the Last 30
Days
KPI #4 Avg. CE / Order in Tel-Sell Accounts
KPI #5 OOC $ as a % of Net Sales

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VERNO’S BEER BRIEF
➢ Included in subscription to Verno’s Beer Brief
● Over 130 Beer Briefs
● KPIs for 11 key functions
● Sample job descriptions
● Case studies
● Self-tests
● Wholesaler management tools
Subscribe today at www.BeerBrief.com
or contact Wes Verno at:
303.718.7849
WesVerno@VernoConsulting.com

PROACTIVE MANAGEMENT WITH
Real-Time Dashboards
Beverage Industry Analytics Solutions

Metrics that Matter
To review, Wes mentioned:
๏ You can’t improve what you don’t measure
๏ Only measure what is really important to you
๏ What is important to management becomes
important to the rest of the company
๏ We have a solution looking for this problem…

Optimization Algorithms
inefficiency
inefficiency
optimized
We help develop best-practices that improve performance and increase
profitability. Creating ‘scoped’ views alert you to when KPIs are outside
of the acceptable range.
hours
days

Compound Views
‘Data Triangulation’ is a term we use to describe seeing data
points that substantiate the truth. By triangulating budgets with
actuals we can get to interesting data…

Any device. Anywhere. Any time.

Big Picture | How it works.
๏ We take all of your data from every source
and aggregate it into one mega-data set
๏ We work with you to define the metrics
that mean something to your business
๏ We build the plan for making that new
intelligence useful to your everyday
operations
๏ We launch a real-time, secure, protected
view that helps you run your company
better every day

How it Works | Aggregation
We build connectors that connect to all of the data available across all channels– from
in-house systems to cloud apps– and create a centralized database of everything.

How it Works | Servers & Spreadsheets
From sales reports to expenses to inventory, spreadsheets are always an important
part of a company’s pulse. We identify all of those spreadsheet data sources and
develop a plan to capture the data.

How it Works | Data from the Cloud
We can connect to all of your cloud apps too. If there
is an API we can pull your data into Nowsight™.
* Connect to these services and thousands of others.

Features | Rules & Triggers
We will work with you to define Rules &
Triggers for your business that will help
automate portions of your business
intelligence.
Nowsight™ can keep you informed:
• When things go wrong
• When things go right
• When action needs to be taken
• When staff need reminders

Features | Automated Alerts
With rules and alerts set up, the system will automatically alert the right people when
things go awry– or well.
ALERT
Your OT spending
is over budget by
13.7%

Features | Morning Scorecard™
Receive your most up-to-date KPIs in your
inbox every morning.
Morning Scorecard™ can be configured for
different roles:
1. CEOs can get a top level view of their organization
2. General Managers can get a scorecard for their
team’s progress
3. Operations can get scorecard on their drivers and
routes
4. Accounting can track expenses by route or driver
Anything is possible if the data exists.

Nowsight™ is just a new layer on top
of your existing infrastructure..
Accounting Warehouse Delivery CRM Sales

What does mean for you?
๏ Keep your old systems that work in-place.
No new software or data storage changes needed
๏ One source for all KOI and KPI reporting that is
available from anywhere, 24/7/365
๏ One login for a customized 24/7 dashboard with the
KPIs that matter to your industry
๏ Deliver accurate KPIs and KOIs to your team every
single day. Fix issues before they become problems.
๏ Every day is an opportunity to course correct and
improve your business
1 marathon vs. 30 sprints
With Nowsight™ every day is a
fresh start with potential to
create improvement.

Is Nowsight™ right for you?
Do you have systems that require multiple logins and/or spreadsheets that are created
manually that help run your business?
Does everyone have simple, real-time access and does information come automatically to them customized narrative for their specific role and position in the
company?
Do you have people in roles (full or part-time) spending more than 2-5 hours each week on
spreadsheets or reporting?
Most have up to 30% of their people working 2-5 hours/day on reporting - huge hidden cost - versus working on increasing revenue or decreasing cost
Do you have data that are ‘trapped’ in a server room, on someone's computer, or
spreadsheets - and the information is distributed periodically as email attachments?
Less than 5% of people actually look at these, and don't look at the right information, and don't contain all or the correct info or timeframe to make good decisions -
even if they are opened (which they are not).
Do people have specific personal or department goals that they need to deliver on
daily/weekly to ensure the company hits their business objectives? Do they need to see
their progress/performance?

Thank you for being with us today!
Verno Consulting and Nowsight™ are ready to help you solve your complex business problems.
For more information, please get in touch.
http://www.verno-consulting.com
303.807.5176
http://www.nowsight.com
703.828.4586

The KPIs High-Growth Beverage Distributors Measure (And How to Actually Track Them)

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