Performance management for FMCG distributors

KRAs for salesmen

A salesman's KRAs should match the way the principal company measures the distributor, or the two will pull in different directions. Keep five or six goals, all taken from the distributor management software, and review them in the first week of the next month, when the numbers are final. Collections deserve a real weight: a salesman who books big orders from retailers who never pay is creating a problem, not sales.

• Value sold against the monthly target
• Lines per call, the average number of products per order
• Effective coverage: outlets billed at least once in the month
• Must-sell products placed in target outlets
• Collections within the agreed credit days
• New outlets added to the beat

KRAs for delivery, godown and billing

Delivery staff are measured on deliveries completed on the day, returns and refusals, cash settled without a shortage and care of the vehicle. Godown staff are measured on picking accuracy, truck turnaround time, stock variance at the monthly count, and expired or damaged stock kept low through first-expiry, first-out rotation. Billing operators answer for invoice errors and for invoices ready before the vans load. The godown in-charge carries the godown's audit result and its safety record.

A weighted example for a salesman

Set Ravi's goals up in ZeniaHR as KPIs, each with a weight, and his weighted progress is worked out for him: value against target 40, effective coverage 20, lines per call 15 and collections 25. He meets the value target in full, reaches 75 percent of the coverage goal, 60 percent on lines per call and 80 percent on collections, for a weighted progress of 40 + 15 + 9 + 20 = 84 percent. The review should spend its time on lines per call, because Ravi sells a lot of one product and too little of the rest.

Review rhythm and recognition

A monthly cycle suits salesmen, delivery and godown staff, matching the principal company's target month and the incentive cycle. Supervisors get a quarterly cycle and everyone an annual one for increments. Joiners are rated from 1 to 5 on probation by their supervisor in My Team. For praise, the Problem solver badge fits the godown in-charge who unloaded a truck at midnight to save the next day's deliveries, and the monthly leaderboard gives field staff recognition they rarely get at the office.

How to set it up in ZeniaHR

1. In Performance, run a monthly cycle for field and godown staff, a quarterly one for supervisors and a yearly one for increments, all on the same rating scale.
2. Give each salesman weighted KPI goals for value, coverage, lines per call and collections, drawn from the distributor software.
3. Give delivery and godown staff their own goals, such as settlement accuracy, picking accuracy and stock variance.
4. Close each monthly cycle in the first week of the next month, once the principal company's figures are final, and read the cycle summary.
5. Recognise field and godown staff through praise badges, and read out the monthly leaderboard at the morning meeting.

Read more about performance in ZeniaHR.

Roles this applies to

Frequently asked questions