Using Total Distribution Points (TDP) For Assortment, Forecasting, And Store Prioritization

Total Distribution Points (TDP) is a distribution measure calculated by summing the percent ACV distribution of individual products in a brand or assortment. Warehouse managers, merchants, and sales teams can use TDP to guide assortment decisions, forecast demand across channels, and prioritize store onboarding by estimating the ACV-weighted impact of listings.

How TDP Informs Assortment Decisions

TDP shows how much aggregate ACV exposure an assortment generates. When deciding whether to add or cut SKUs, compare each SKU’s incremental TDP contribution to its incremental sales, margin, and logistic cost (warehouse touch, packaging complexity). A SKU that adds significant TDP but low incremental sales may be cannibalizing existing SKUs; a SKU that adds modest TDP but brings unique high-velocity accounts may be strategically important.

Forecasting Demand With TDP

Because TDP is ACV-weighted, it correlates with potential sales more closely than numeric distribution alone. Use TDP together with velocity-per-TDP-point (historical sales divided by TDP) to estimate the sales potential of new listings or channel expansions. For forecasting:

• Label:Estimate Velocity: Calculate the historical average sales per TDP point for similar SKUs or channels.
• Label:Apply To New TDP: Multiply the projected TDP lift from a new listing by the estimated velocity to forecast incremental volume.
• Label:Adjust For Seasonality: Apply seasonal and promotional uplift factors when the forecasted period includes events that change demand patterns.

Prioritizing Stores And Accounts

Not all store listings are equally valuable. Use TDP to translate potential account wins into expected ACV exposure. Rank targets by the expected incremental TDP per sales call or per listing cost to prioritize sales visits. For example, a regional chain that would add 20 ACV points for the assortment may be a higher-priority target than several small independents that together add the same numeric count but lower ACV.

Warehouse And Fulfillment Implications

Understanding where distribution depth lies helps warehouse teams plan inventory placement and replenishment strategies. High TDP concentrated in a small number of high-ACV stores suggests higher replenishment frequency to a few key DCs; broad TDP spread across many small accounts suggests more distributed inventory staging and possibly different pack sizes.

Practical Implementation Steps

• Label:Integrate Data Sources: Combine ACV data from syndicated providers with your SKU master and POS to compute SKU ACV% and TDP consistently.
• Label:Create Dashboards: Build TDP dashboards by brand, channel, and geography to track where assortment depth is growing or lagging.
• Label:Set Actionable Targets: Translate business goals (e.g., increase percent ACV by X points) into TDP lifts so field teams know the SKU-level outcomes required.
• Label:Close The Loop: Use sell-through and velocity-per-TDP metrics to evaluate whether TDP gains delivered the expected sales — iterate assortment and field programs accordingly.

Case Example For Merchants And 3PLs

A national snacks brand plans to add two new SKUs. The expected ACV gains are 25 and 15 points respectively, producing a projected TDP lift of 40. The commercial team uses historical velocity of $1,200 sales per TDP point to forecast $48,000 incremental sales per period. The warehouse teams review pack sizes and determine added SKUs will increase SKU count but can be consolidated into existing pick profiles, minimizing incremental handling costs. Sales teams then prioritize accounts that contribute most to the 25-point SKU’s ACV to maximize ROI of listing efforts.

In short, the Total Distribution Points (TDP) metric turns SKU-level percent ACV figures into a practical, ACV-weighted view of assortment reach and depth. When integrated with velocity, on-shelf availability, and fulfillment costs, TDP becomes a powerful tool for assortment planning, forecasting, and store prioritization across merchandising and warehousing operations.