Wholesale & Retail Trade
Wholesale & Retail Trade Analytics.
Measuring performance, efficiency, and cost-effectiveness.
We have identified several industry specific metrics (see below) that may be of interest to you. However, there are basic business metrics that should always be analysed, and regularly, in order to point you in the direction of what needs investigation. These are:
Revenue. Total income generated from sales before any expenses. It shows the overall scale of the business and is a top-line indicator of growth and demand.
Net Profit Margin. Net Profit expressed as a percentage. It reveals how much actual profit the business makes after all expenses … a key measure of efficiency and sustainability.
Cash Flow. Net amount of cash moving into and out of the business. Indicates liquidity and the ability to meet short term obligations, invest, and grow.
Fixed Costs vs Revenue. Costs associated with running the business. Identifies areas to reduce costs and improve profitability.
Accounts Receivable/Payable. Identifies what may be affecting cashflow.
Industry Specific Metrics: Wholesale & Retail Trade
Inventory Turnover Ratio
Why? Low turnover signals overstocking or stocking slow-moving products, tying up cash unnecessarily. High turnover demonstrates efficient use of capital.
Average Order Value
Why? Helps optimise pricing strategies and upselling opportunities. Higher Order Value generally leads to better profit margins.
Order Picking Accuracy
Why? Mistakes in picking leads to returns, rework and unhappy customers. Accurate picking improves customer satisfaction and stops wasted time in re-stocking, and re-picking.
Stock-on-Hand Accuracy
Why? Discrepancies between system and physical counts cause delays, stockouts, and trust issues with customers and management.
Customer Retention Rate
Why? Indicates customer satisfaction and brand loyalty. Retaining customers is usually cheaper than acquiring new ones.
Low Backorder Rate
Why? High numbers of backorders leads to frustrated customers which leads to lost sales. Tracking helps identify demand planning and inventory issues.
Return Rate
Why? High return rates may indicate quality issues, misleading product listings, or poor customer satisfaction.
Gross Profit Margin
Why? Measures how efficiently you’re producing and selling goods. A healthy margin is critical for long-term sustainability.
Average Weekly/Monthly Sales
Why? Identify quantity of stock required to cover average sales over coming months.
Revenue per Employee
Why? Evaluates productivity and efficiency of the workforce, especially important in retail where labor costs are significant. Also assists in fixed costs vs revenue analysis.