In order to compete at these higher levels, distributors are finding it necessary to mesh with new trends and mandatory to expand their efficiency practices. Increased productivity and lean thinking are partners in the new distribution model. Together these ideologies help produce greater efficiency and higher profits.
Productivity measurement and profitability are key factors aiding the rise of distribution influence. Productivity is most commonly measured by output per hour. This measurement reflects the combined effects of changes in technology, capital per worker, level of output, capacity utilization, managerial skills, and more.