Velocity per Point of Distribution KPI

Velocity per Point of Distribution (Velocity per POD) measures the rate at which a product sells at each distribution point where it is available. It provides a clearer picture of product pull and execution effectiveness beyond just numeric reach.

For consumer goods brands, this KPI is crucial to assess SKU health, optimize assortment, and ensure that distribution translates into sell-through.

Why Velocity per POD Matters

• Reflects product demand strength at individual outlets
  
• Highlights how well distribution converts into sales
  
• Identifies underperforming SKUs or gaps in brand visibility
  
• Aids in refining portfolio strategy and field execution
  
• Drives more efficient distribution expansion by focusing on high-yield outlets
  

How to Measure Velocity per POD

The average sales volume per store where a product is distributed.

Formula:
Velocity per POD = Total Sales Volume / Number of Outlets Stocking the Product

Example: If a product sells 10,000 units across 250 stores, Velocity per POD = 10,000 / 250 = 40 units per store.

Data is typically sourced from DMS, ERP, or POS systems and segmented by SKU, territory, or time period.

What Drives Velocity per POD

• Assortment planning and relevance of SKU to store profile
  
• On-shelf availability and planogram adherence
  
• In-store visibility and promotion execution
  
• Field visit quality and rep pitch consistency
  
• Stockout resolution speed and fulfillment accuracy
  

Let’s explore a key sub KPI: Stockout Recovery Time

Sub-KPI: What Is Stockout Recovery Time?

The average time taken to replenish a product after a stockout is reported at the outlet or distributor level.

Why It Matters

• Reflects agility of supply chain and responsiveness of sales teams
  
• Impacts shelf availability and immediate sales potential
  
• Shorter recovery times reduce lost sales and improve customer satisfaction
  

How It’s Measured

Stockout Recovery Time = Time between stockout occurrence and product replenishment

How to Improve It

• Set SLAs for replenishment timelines across channels
  
• Use automated alerts for stockout reporting and refill actions
  
• Equip reps with tools to flag and escalate stockouts in real time
  

How This Sub KPI Drives Velocity per POD

Quick recovery from stockouts ensures consistent availability, helping sustain high sales rates at each store. Delays in recovery reduce sell-through even in well-covered outlets, lowering overall velocity.

How to Drive Execution at Scale

• Set territory and SKU-wise velocity benchmarks
  
• Train reps to monitor sales per store and flag low-velocity accounts
  
• Audit availability and response time for stockout incidents
  
• Incentivize high-velocity SKUs and rapid refill execution
  

How BeatRoute Can Help

This is where BeatRoute’s Goal-Driven AI framework comes in:

• Set distributor level and retailer level goals, by SKU and territory, and track performance in real time with dashboards showing per-store sell-through and low-velocity alerts
  
• Empower reps with agentic AI workflows to identify stockouts, trigger restock nudges, and optimize SKU targeting per outlet profile
  
• Gamify field behavior by rewarding quick refill actions and sustained velocity achievements
  
• Solve velocity dips with BeatRoute Copilot, which prompts managers with insights like “Which SKUs dropped in sales despite high coverage?”
  

Conclusion

Velocity per Point of Distribution bridges the gap between reach and effectiveness. Brands that optimize this KPI can drive more sales from every outlet, ensuring deeper pull and better ROI on distribution efforts.

👉This KPI is a core execution metric recognized across the global consumer goods and FMCG industry. It is widely used to measure field performance, outlet-level impact, and sales execution effectiveness. Tracking this KPI helps retail brands align local and national execution with broader business goals like growth strategy, market expansion, and profitability.