How do I evaluate distributor performance?
The short answer: Look past total cases. Check how many accounts are buying, how many are reordering, which SKUs are moving and whether new placements are happening. Then compare the distributor to its own history and the plan you agreed on. A new market and a mature one shouldn't be ranked side by side.
The measures that matter
- Depleted volume
- Active accounts (anyone who bought in the period)
- Repeat accounts
- New placements
- SKU mix
- Distributor inventory, if they share it
When volume drops, find out which kind of drop
Fewer accounts bought. The same accounts bought less. One big account skipped a month. A key product was out of stock. Each of those looks the same in a total, and each needs a different fix.
Compare fairly
A market you launched six months ago won't look like one you've been in for ten years. Account count, pricing, product supply and how much support you've given all shape the results. Judge a distributor against its plan and its own past first, then against other markets.
Remember your half
If you haven't been in the market, haven't sent samples or ran out of product, some of the result is on you. A fair review covers both sides.
End with actions
Agree on which accounts to visit, which products to push, which data gaps to fix, and when you'll check again. Put a name next to each one.