Steven's Knowledge
Wholesale

Success Metrics & KPIs

Key performance indicators for evaluating wholesale and distribution software

Overview

Measuring the success of wholesale and distribution software requires a structured approach across multiple dimensions. This document organizes KPIs aligned with the SCOR (Supply Chain Operations Reference) framework's five performance attributes — Reliability, Responsiveness, Cost, Assets, and Agility — plus digital commerce and platform-specific metrics.

SCOR-Aligned Supply Chain Metrics

Reliability

Measures the ability to perform tasks as expected — accuracy, completeness, and consistency.

MetricDescriptionBenchmark
Perfect Order RateOrders delivered in-full, on-time, damage-free, with correct documentation>90%
DIFOT / OTIFDelivered In-Full, On-Time — the industry-standard fulfillment metric>95%
Order Accuracy RateOrders with correct items, quantities, and pricing96–99% (digital) vs 85–92% (traditional)
Fill RatePercentage of ordered line items fulfilled from available stock>97%
Pick AccuracyWarehouse picking accuracy rate>99.8%
Forecast AccuracyDemand forecast accuracy (at SKU/location level)>70% at SKU level

Responsiveness

Measures the speed at which tasks are performed — cycle times and lead times.

MetricDescriptionBenchmark
Order Cycle TimeTime from order placement to deliveryTrack trend, varies by sector
Order Processing TimeTime from order entry to warehouse release<2 hours (automated)
Warehouse Throughput TimeTime from pick release to shipmentSame-day for in-stock items
Quote-to-Order Cycle TimeTime from quote request to confirmed order<24 hours
Returns Processing TimeTime from return request to credit/resolution<5 business days

Cost

Measures the cost of operating supply chain processes.

MetricDescriptionBenchmark
Cost per OrderTotal cost to process one order (labor + system + fulfillment)Digital orders 30–50% lower than traditional
Cost-to-ServeTotal cost of serving a customer (sales, logistics, support)Segment by customer tier
Transportation Cost per UnitFreight and delivery cost per unit shippedTrack trend
Warehouse Cost per Order LineCost to pick, pack, and ship one order lineTrack trend
Total Supply Chain Cost as % of RevenueEnd-to-end supply chain cost ratioWholesale avg: 5–10%

Asset Management

Measures the effectiveness of asset utilization — inventory, facilities, and working capital.

MetricDescriptionBenchmark
Cash-to-Cash Cycle Time (CCC)DIO + DSO − DPO — measures how fast inventory converts back to cashLower is better; wholesale avg: 30–45 days
Days Sales Outstanding (DSO)Average days to collect receivables after a sale<45 days
Days Inventory Outstanding (DIO)Average days inventory is held before saleWholesale: 20–30 days
Days Payable Outstanding (DPO)Average days to pay suppliersNegotiate to extend
Inventory TurnoverAnnual COGS / average inventory valueWholesale: 12–18 turns/year
GMROIGross Margin Return on Inventory Investment — gross profit / avg inventory cost>2.0
Stockout RatePercentage of SKUs unavailable when ordered<3%
Dead Stock / Obsolete InventoryPercentage of inventory with no sales in 6–12 months<5%
Warehouse UtilizationWarehouse space utilization rate85–90%

Agility

Measures the ability to respond to external changes — market shifts, demand spikes, disruptions.

MetricDescriptionBenchmark
Upside Supply Chain FlexibilityTime to achieve 20% sustainable increase in delivered quantities<30 days
Supplier Lead Time VariabilityStandard deviation of supplier delivery lead timesLower is better
Order Change FlexibilityAbility to modify orders after placement (cut-off windows)Track capability
New Product Time-to-CatalogTime to onboard a new SKU and make it orderable<48 hours

B2B Digital Commerce Metrics

Adoption & Engagement

MetricDescriptionBenchmark
Digital Order RateShare of orders placed via digital channels (vs phone/fax/email)>70%; industry trending to 80%+
Active User RateRegistered customers who actively order via platform>60%
Self-service RateCustomer actions completed without sales rep involvement83% of B2B buyers prefer self-service
Mobile Order SharePercentage of digital orders placed via mobile appTrack upward trend
Reorder RatePercentage of orders that are repeat purchasesCritical for B2B; higher is better
Feature Adoption RateUsage of advanced features (bulk upload, saved lists, recipe builder, etc.)Track per feature

Conversion & Transaction

MetricDescriptionBenchmark
B2B Conversion RateVisitor-to-order conversion rateMedian: 2.9% across B2B
Quote-to-Order RatePercentage of quotes that convert to orders>30%
Search Success RateSearches that lead to add-to-cart — critical for large catalogs (10K+ SKUs)>40%
Cart Abandonment RatePercentage of carts not converted to orders<20% (B2B typically lower than B2C)
Average Order Value (AOV)Average revenue per orderWholesale: $2,100–$8,900 depending on sector
Straight-through Processing RateOrders processed without human interventionLeading platforms: 85%

Customer Metrics

MetricDescriptionBenchmark
Customer Retention RateAnnual customer retention>90%
Customer Lifetime Value (CLV)Total revenue from a customer over the relationshipCLV / CAC > 3:1
Net Promoter Score (NPS)Customer likelihood to recommend>40 is excellent
Cross-sell / Up-sell RateAdditional revenue from platform recommendations>10%
Share of WalletCustomer's spend via your platform vs total category spendLeading companies: 70%+ within 18 months
Customer Acquisition Cost (CAC)Cost to acquire a new customerTrack trend; B2B avg CPL: $148

Financial Impact

MetricDescriptionBenchmark
Gross MarginGross profit as percentage of revenueWholesale avg: ~20–25%; distributors avg ~4% net profit
Digital Revenue Growth RateYear-over-year growth of digital channel revenueWholesale: 18–25% annual growth
Sales Rep ProductivityRevenue per sales rep, or customers managed per repShould increase post-digitization
IT Cost as % of RevenueTechnology investment ratioWholesale: 1–3%
ROI / Payback PeriodReturn on software investmentSCOR DS users report 2–6x ROI in year 1
Accounts Receivable TurnoverRevenue / average accounts receivableHigher is better; indicates collection efficiency

Platform Health

MetricDescriptionBenchmark
System UptimePlatform availability>99.9%
Page Load TimeTime to render pages<2 seconds
API Response TimeERP integration endpoint response time<500ms
ERP Sync Success RateSuccess rate of price, stock, and order data synchronization>99.9%
Error RateApplication error rate during checkout, search, and ordering<0.1%
Time to DeployRelease cycle for new features and updatesTrack cadence

How to Use These Metrics

Phased Focus

  1. Launch phase (0–6 months): Focus on Digital Adoption metrics — drive migration from offline to online channels
  2. Growth phase (6–18 months): Shift to Order Operations and Customer Metrics — optimize experience, accuracy, and retention
  3. Maturity phase (18+ months): Prioritize Financial Impact and Asset Management — pursue ROI, CCC optimization, and scale

Leading vs Lagging Indicators

  • Leading indicators: Digital adoption rate, search success rate, forecast accuracy, feature adoption — predict future performance
  • Lagging indicators: Revenue growth, gross margin, perfect order rate, customer retention — confirm past performance
  • A balanced scorecard should track both to enable proactive decision-making

Comparison Dimensions

  • Digital vs traditional: Compare the same metric across online and offline channels
  • Time trends: Month-over-month, quarter-over-quarter, year-over-year
  • Customer segmentation: Key accounts vs SMB, new vs existing customers
  • Regional benchmarking: Performance across different markets, warehouses, and delivery zones
  • Industry peer benchmarking: Compare against ASCM/SCOR peer data or industry quartiles

Reference Frameworks

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