How do I build a distributor scorecard?
The short answer: Pick five or six measures you and the distributor agree on, define each one clearly, and review them on the same schedule every time. Volume, active accounts, new accounts, reorders and SKU movement are a good start. Add a line for the actions each side committed to.
Start small
- Depleted volume, in one stated unit
- Active accounts
- New accounts
- Repeat accounts
- Movement by SKU
- Actions completed by each side
Add inventory or out-of-stocks only if the distributor can give you reliable numbers.
Define every measure
Write down the unit, the period and which accounts count. "Repeat account" needs a rule, like "bought in this quarter and last quarter." "Growth" needs a comparison period. If a number is missing, show it as missing.
Set targets that fit the market
A new market and an established one need different targets. Base them on how long you've been there, how much product is available and what you've agreed to do together.
Add a sentence, not just a color
Red or green alone doesn't help anyone. Next to each number, write what's likely driving it and who's following up. A low number caused by an out-of-stock needs a different response than one caused by fewer buyers.
Share it before the meeting
Send it ahead and let them correct anything that's wrong. A scorecard both sides trust is worth more than one that starts an argument.