Metrics 20 pages

Distribution KPI Scorecard

The 12 metrics every distribution leader should review monthly — with exact formulas, NAW industry benchmarks, root cause analysis for when numbers decline, and specific improvement levers you can pull.

Every KPI in this scorecard has a clear formula, an industry benchmark, and specific levers you can pull when the number isn't where it should be. We don't include a metric unless you can do something about it.

  • MRR should represent 60-75% of total revenue — below 50% means dangerous dependency on one-time orders
  • Revenue per customer trending down while customer count grows = diluted sales effort
  • DSO benchmarks: best-in-class 28-32 days, average 42 days, problematic 55+ days
  • Four dimensions covered: Revenue & Growth, Operations Efficiency, Customer Health, Team & Capacity

The 12 metrics that actually matter

Stop flying blind with vanity metrics

Most distributors track revenue, margin, and AR aging. That's like driving a truck by only checking the fuel gauge. These 12 KPIs give you the complete picture.

Real industry benchmarks from NAW data

Know exactly where you stand against peers: best-in-class DSO is 28-32 days, MRR should be 60-75% of total revenue, and more.

Actionable root cause analysis for every KPI

When a number is trending wrong, the top 3 root causes and specific improvement levers are spelled out — no guessing required.

Track trends, not snapshots

One bad month isn't a crisis. Three consecutive months of decline is a pattern. The scorecard framework helps you tell the difference.

What's included

  • 12 KPI Definitions & Formulas

    Exact calculation formulas with variable definitions — no ambiguity about what to measure

  • Industry Benchmark Reference

    NAW/NACD benchmarks for each KPI across electrical, plumbing, HVAC, and industrial segments

  • Google Sheet Spec

    Specifications to build your own monthly tracking dashboard — pull data from ERP on the 1st, review on the 5th

This is for you if

  • — You review financials monthly but don't have a structured KPI framework covering operations, customers, and team capacity
  • — You want to catch problems early — declining customer frequency, wallet share erosion, team capacity ceilings
  • — Your leadership team needs a shared scoreboard to align priorities each month

Skip this if

  • — You already have a comprehensive KPI dashboard with automated data pulls from your ERP

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