Beer Wholesaler Cascading KPIs

One best practice for using key performance indicators (KPIs) is to choose a top-level company goal, and then support that goal with departmental level key metrics.

  1. Identify and measure the most important number in your business
  2. Identify and measure the key drivers of your most important number

Let’s cut to the chase. Cash flow is the most important number in your business.

Without cash, we’re out of business. Without a specific and continual focus on cash flow, it’s easy to lose track of this most important asset.

There are many drivers of cash flow. Below are five to start with:

  1. Accounts receivable
  2. Accounts payable
  3. Inventory
  4. Capital spending
  5. Debt service

Each department in your business should have a KPI (or two or three) that support the top-level company goal.

Examples of departmental KPIs:

  1. Sales growth %
  2. Delivery profit per stop
  3. Warehouse picking accuracy
  4. Inventory turnover
  5. A/R Collections
  6. Marketing events (or subscribers, or website visits, etc)

Do this next:

  • Watch the short KPI video below
  • Learn more about the network for beer wholesaler professionals