Food & Beverages  |  Key Performance Indicators

KPI Performance Key

Your business may just be beginning to track this metric, perform this business function or identified this as a problem. Improved execution in this area should be a high priority.

Your business is competitive in this area, but there’s still room for advancement. Consider investments to improve related operations to achieve better results.

Your performance in this area is considered best in class and is superior to the average company in your sector. You’ve laid a solid foundation in this business function, and the next step is optimization.

You’re achieving the optimal results for this metric. Your business processes in this area are highly efficient and stand out against competitors. Keep investing in this area to maintain these results.

Top Performers

Inventory Turnover

For food and beverage manufacturers and distributors, getting inventory turnover just right is imperative to profitability. The manufacturing of perishable items requires a more frequent turnover with the goal of producing the least amount of waste. Another important component to consider when defining inventory turnover goals is the gross margin on the sale of your products. Lower margins require higher stock turnover to meet revenue targets. Typically buying less product more frequently in the food and beverage space allows for bette.

>4%
Foundational
4%
Competitive
3.5%
Best is class
>3.5%
Transformative

Explosive Growth Rate

Craft Breweries

At the end of 2017, there were 6,266 craft breweries nationwide, an increase of 15.5% over 2016. Perhaps more astounding is that the quantity of craft breweries has nearly tripled in five short years.1

Sources: 1. Brewers Association, “Number of Breweries,” www.brewersassociation.org/statistics/number-of-breweries/, (2017).

Left Quote
Perhaps more astounding is that the quantity of craft breweries has nearly tripled in five short years,1.”

Source: 1. Brewers Association, “Number of Breweries,” www.brewersassociation.org/statistics/number-of-breweries/, (2017).

Fill Rate

For food and beverage manufacturers and distributors, getting inventory turnover just right is imperative to profitability. The manufacturing of perishable items requires a more frequent turnover with the goal of producing the least amount of waste. Another important component to consider when defining inventory turnover goals is the gross margin on the sale of your products. Lower margins require higher stock turnover to meet revenue targets. Typically buying less product more frequently in the food and beverage space allows for bette.

>4%
Foundational
4%
Competitive
3.5%
Best is class
>3.5%
Transformative

Distribution Coast as a % of Revenue

Distribution costs represent one the largest areas of expenditure for a food and beverage company. It’s imperative when working with perishable items that the shipment method has the correct environment and timeliness to get items on the shelf at their peak freshness. Some companies lower distribution costs by consolidating shipments, using integrated sales and fulfillment data, cross-docking and implementing 3PL.

>4%
Foundational
4%
Competitive
3.5%
Best is class
>3.5%
Transformative

eCommerce
Growth

Foundational

<10%

Competitive

<10%

Best is class

20%

Transformative

30%

Revenue
Growth

This metric indicates how fast your company is growing, measured by total revenue. The higher this percentage is, the faster your revenue growth.

Days Sales
Outstanding

<94%

<94%

96%

>96%

Inventory
Turnover

1.8%

1.8%

1.8%

0.8%

Fill Rate

<10%

<10%

20%

30%

Distribution
Costas a %
of Revenue

>3 Turns

>3 Turns

10 Turns

18 Turns

Customer
Service
Responsiveness

<94%

<94%

96%

>96%

Time to Close
the Books

1.8%

1.8%

1.8%

0.8%

Total IT Cost as
a % of Revenue

1.8%

1.8%

1.8%

0.8%

Other Categories
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