Start by naming the transaction.
Shipments generally describe product moving from a supplier to a customer or distributor. Depletions commonly describe product moving out of a distributor to downstream accounts. Confirm the definition, source and timing in each reporting system before combining them.
Separate reach from rate of sale.
Distribution tells you where a product is available under a defined measure. Velocity describes the rate of sale within a defined distribution base and period. Neither is meaningful without its denominator: accounts, stores, selling weeks or another agreed unit.
Use the gap as a question, not a conclusion.
If shipments rise while depletions hold steady, ask about inventory, ordering patterns, promotions and reporting timing. The difference alone does not prove a problem or tell you its cause.
Make a small definition sheet.
For each measure, record the source, business meaning, units, time period, exclusions and owner. Use that sheet in the report and in the meeting where the report is discussed.
Put it into practice
Four questions for your next conversation.
- What transaction is counted?
- Which units and period are used?
- What is missing or delayed?
- Who can explain an unexpected change?