Distributor participants in the program receive a side-by side analysis of their performance metrics next to industry averages allowing for easy identification of areas for improvement and a better understanding of "best practices" of distribution companies.
"The 2019 study will provide distributors an efficient means of gaining insight into their business while identifying areas of improvement and uncovering new opportunities for growth," said Kevin Gammonley, NBMDA Executive Director. "The annual financial benchmarking report addresses critical business questions with unprecedented ease, speed and accuracy."
Some of the questions finance analytics featured in this report can help answer include:
- What is the "profitability gap" between High Profit distributors from the rest of the pack?
- What is a competitive gross margin in the distribution channel?
- What type of productivity should a distributor owner expect out of employees?
- Are payroll expenses in line with industry benchmarks?
"Financial benchmarking not only serves as a performance metric, it magnifies small issues that could be improved upon or corrected before they snowball into big issues. Participating distributors will better understand their strengths and weaknesses, as well as those of their competitors, added Gammonley. "Benchmarking is a powerful tool and NBMDA is thrilled to bring this exciting program to our members."