If you own or manage a distribution business, you’re already aware that it is a thin-margin venture. It’s not unusual to lose money on many of the items you have in inventory. The entire wholesale-distributor industry achieves an average net profit of 4% annually (The National Association of Wholesalers and Distributors). Distribution companies that achieve these profit levels (or higher) rely on monitoring distribution KPIs (Key Performance Indicators) to control expenses and maximize profits.
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