ERP Reports: 3 Simple Reports Every Distributor Should Use Daily

In today’s data-driven distribution landscape, your ERP reports contains a gold mine of actionable insights that can dramatically improve your operational efficiency and bottom line. Yet many distributors are overwhelmed by the sheer volume of available reports and aren’t leveraging the most critical ones for daily decision-making. At 910 Advisors, we’ve helped countless distribution companies transform their operations through strategic ERP implementation and optimization. How ERP Systems Are Transforming the CPG Industry

Let’s explore three essential ERP reports that every distributor should review daily to maintain optimal inventory levels, improve cash flow, and enhance customer satisfaction.

Inventory Movement and Status Report:

Why This Report Matters: Your inventory is your lifeline. Too much inventory ties up cash and increases carrying costs; too little leads to stockouts and disappointed customers. The daily Inventory Movement and Status Report provides a real-time snapshot of your inventory health, allowing for immediate corrective actions. 

Key Metrics to Monitor:  

• Current Inventory Levels: Review stock levels across all products, focusing particularly on your A-items (high-volume, high-profit products that typically represent 20% of inventory but 80% of sales). 

• Inventory Turns: This metric shows how many times your inventory sells out and gets replenished annually. Lower turns mean potential deadstock issues, while higher turns indicate efficient inventory management. 

• Days of Supply: Understanding how many days your current inventory will last helps prevent both overstocking and understocking situations. 

• Slow-Moving Items: Daily monitoring helps identify products that aren’t moving as expected, allowing for quicker pricing or marketing adjustments. 

• Item Velocity Changes: Sudden shifts in how quickly certain items are selling can indicate market trends or seasonal shifts that require adjustment. 

Taking A Taking Actionable Steps:  

When reviewing this report each morning, distribution managers should: 

• Identify any items approaching reorder points and verify purchase orders are in process 

• Flag slow-moving inventory for potential promotions or bundle opportunities 

• Note any unexpected velocity changes requiring investigation (supplier issues, quality concerns, or market shifts) 

• Cross-reference against upcoming customer commitments to ensure sufficient stock 

One 910 Advisors client, a mid-sized industrial supplies distributor, implemented daily inventory movement reviews and reduced their carrying costs by 23% within six months while simultaneously decreasing stockout incidents by 14%. Source: Supply Chain Management Review

Order Fulfillment Performance ERP Reports:

• Why This Report Matters: Your customers’ experience hinges on timely, accurate order fulfillment. Daily monitoring of order performance provides immediate visibility into operational bottlenecks and customer service issues before they escalate. 

Key Metrics to Monitor: 

• Fill Rate: The percentage of orders shipped complete on the first attempt. This key performance indicator directly impacts customer satisfaction and operational efficiency. 

• Order Cycle Time: Tracking the average time from order placement to shipment helps identify bottlenecks in your fulfillment process. 

• Backorder Status: Daily tracking of backordered items allows for proactive customer communication and priority handling. 

• Picking Accuracy: Errors in order picking lead to returns, customer dissatisfaction, and additional shipping costs. 

• Same-Day Shipping Performance: For distributors promoting same-day shipping, tracking this metric is essential to maintaining service level agreements. 

Taking Actionable Steps: 

Distribution operations managers should: 

• Address any orders that failed to ship the previous day and prioritize them 

• Identify recurring bottlenecks in warehouse operations 

• Recognize patterns in order errors that might indicate training needs or process improvements 

• Follow up on critical backorders with vendors 

• Communicate proactively with customers about any potential delays 

A regional medical supplies distributor working with 910 Advisors implemented this daily report review process and improved their on-time delivery rate from 92% to 98.5%, significantly enhancing their reputation in a highly competitive market. Source: (WMS) Guide Software Advice

Accounts Receivable Aging ERP Reports:

Source: Gartner’s: Why This Report Matters: Cash flow is the lifeblood of any distribution business. The daily Accounts Receivable Aging Report provides crucial visibility into incoming cash flow and potential collection issues before they become critical problems. 

Key Metrics to Monitor: 

• Current Outstanding Balance: Total accounts receivable provides a snapshot of expected incoming cash flow. 

• Aging Buckets: Breaking down receivables into 0-30, 31-60, 61-90, and 90+ day categories helps prioritize collection efforts. 

• Days Sales Outstanding (DSO): This metric shows the average number of days it takes to collect payment after a sale is made. 

• Collection Effectiveness Index: Measures how efficiently your team collects receivables against what’s available to collect. 

• Customer Payment Patterns: Recognizing when specific customers consistently pay late allows for proactive credit management. 

Taking Actionable Steps: 

Financial managers should: 

• Flag newly overdue accounts for immediate follow-up 
• Identify customers approaching credit limits who may need attention
• Recognize patterns of habitual late payers who might need revised payment terms 
• Prioritize collection calls based on amount and aging 
• Consider early payment incentives for chronically late but valuable customers 

A building materials distributor implemented 910 Advisors’ recommended daily AR review process and reduced their DSO from 47 days to 32 days within a quarter, significantly improving their working capital position. 

Implementing Effective Daily ERP Reports: 

While these three reports provide critical daily insights, the implementation approach determines their effectiveness. Here are best practices for maximizing the value of your ERP reporting: 

Automation and Delivery: 

Configure your ERP system to automatically generate and deliver reports to key stakeholders each morning. Reports should be: 

• Delivered via email before the start of business 

• Available on mobile devices for on-the-go access 

• Formatted with visual indicators (color coding, arrows) highlighting exceptions 

• Designed with drill-down capabilities for deeper investigation 

Cross-Functional Visibility: 

These reports shouldn’t exist in departmental silos. Create a culture where: 

• Sales teams understand inventory constraints 

• Warehouse staff recognize order priority based on customer status 

• Purchasing knows the AR status of vendors who are also customers 

• Everyone understands how their role impacts key performance metrics 

Actionable Insights: 

Reports should drive immediate action: 

• Include clear thresholds that trigger specific responses 

• Assign responsibility for follow-up items 

• Track resolution of identified issues 

• Create a feedback loop where report insights lead to process improvements 

Continuous Refinement: 

Your ERP reporting needs will evolve: 

• Schedule quarterly reviews of report effectiveness 

• Solicit feedback from users on additional data points needed 

• Adjust thresholds and exception rules as business conditions change 

• Incorporate new metrics as you identify additional key performance indicators 

Beyond the Basic ERP Reports: 

Once you’ve mastered these three fundamental daily reports, consider expanding to include: 

• Margin Analysis by Product/Customer: Identifying profit leaders and laggards 

• Shipping Cost Analysis: Spotting opportunities for logistics optimization 

• Sales Rep Performance: Tracking progress against targets in real-time 

• Vendor Performance: Monitoring on-time delivery and quality metrics 

Final Thoughts on Daily ERP Reports:  

In the competitive distribution landscape, making informed, data-driven decisions is no longer optional, it’s essential for survival and growth. By implementing these three critical daily ERP reports, distribution companies gain immediate visibility into inventory health, operational efficiency, and financial performance. At 910 Advisors, we specialize in helping distributors extract maximum value from their ERP systems through optimized reporting, strategic implementation, and continuous process improvement. Our clients consistently achieve significant improvements in inventory management, operational efficiency, and financial performance through strategic use of ERP data. 

Remember, the most valuable ERP reports aren’t necessarily the most complex, they’re the ones that drive immediate, meaningful action. By focusing on these three essential daily reports, you’ll create a foundation for data-driven decision-making that can transform your distribution operation. Ready to optimize your ERP reporting strategy? Contact the distribution technology experts at 910 Advisors today to learn how we can help you turn ERP data into a competitive advantage. Learn more at www.910advisors.com