Chicago – The Ceramic Tile Distributors Association (CTDA) and the North American Association of Floor Covering Distributors (NAFCD) will collaborate for the first time on the 2021 CTDA-NAFCD Financial Benchmarking Program – essentially a study that analyzes side-by-side of their performance metrics alongside industry averages.
The program is designed to optimize distributor performance in an environment of unrelenting pressure on profit margins. By 2021, the program aims to provide flooring and ceramic tile distributors with an even broader view of the distribution channel by sharing aggregated financial data across both member networks.
Operated by a third-party research firm, Benchmarking Analytics, the survey provides distributor participants with a side-by-side analysis of their performance metrics alongside industry averages, allowing for easy identification of areas for improvement and a deeper understanding of best practices. from high-performing distribution companies.
“We are excited to provide our distributor members with an even more valuable decision-making tool in 2021 by partnering with CTDA to more than double our sample size, giving floor distributors an even greater opportunity to assess the performance of their business, identify areas for improvement and discover growth opportunities, ”said Kevin Gammonley, executive vice president of NAFCD.
CTDA Executive Director Rick Church added, “By partnering with NAFCD on this annual benchmarking of distributor performance, participating distributors can make important business decisions as they can measure their performance against the best of not only the independent distributors of ceramic tiles, but also the best of distributors of floors. Every distributor should be excited to take advantage of this unique opportunity to improve their performance. “
Both associations have provided financial benchmarking to their members for many years, and the annual reports provide some of the most detailed analyzes of business and employee performance available to distributors, the groups said.
The 2021 program has a number of objectives, including:
- Provide the opportunity to compare a distributor’s performance against reputable industry performance targets.
- Present data that helps distribution managers rethink their assumptions about strengths and weaknesses.
- Shedding light on poor distribution performance and inefficient processes.
- Provide insight into whether labor costs are in line with industry averages.
- Facilitate decision-making about resource allocation.
- Have participating distributors compare their performance against CTDA distributors only, NAFCD distributors only, or the entire participating group.
The CTDA-NAFCD Financial Benchmarking Program for 2021 collects 2020 data from participating distributors, providing the first clear picture of how the channel performed during the unusual year of 2020. The survey will begin April 1 and a final report will be available in June.