Distribution and Sales Automation: A Complete Glossary of Difficult Terms, Explained Simply (2026)

Today, many companies use modern terminology in their sales and distribution work. From the dozens of abbreviations such as MML, Out of Stock and SKU, we have selected the ones that matter most in the trade sector and explained them in simple, clear language. Below you will find the core terms that sales agents, supervisors, regional managers and company owners use every day.

If not everyone on the team understands these terms in the same way, you can end up with very different results.

This glossary covers more than 45 terms adapted for the distribution and sales market in Uzbekistan. We have tried to explain each one simply, using real examples.

SKU

An SKU (stock keeping unit) is a specific product type or variant.

Example:

• Apple juice, 1 litre

• Apple juice, 1.5 litres

Both are separate SKUs even though they belong to the same brand.

A single distributor can carry hundreds of SKUs. In Sales Doctor, you can pull a report by SKU and monitor your agents' sales.

FIFO

FIFO (First In, First Out) means the first product to arrive in the warehouse is the first to be sold. This model is used mainly for food, pharmaceuticals and other products with a limited shelf life.

Sales Doctor also works on the FIFO model.

SFA (Sales Force Automation)

SFA is a sales process automation system. Order taking, GPS monitoring and photo reports are all part of SFA.

Example: an agent enters an order on a tablet, takes a shelf photo and confirms the visit by GPS. That is the SFA process.

Sales Doctor is an SFA platform adapted for the Uzbekistan market and used by more than 2,000 companies.

Van selling

Van selling is a method of selling goods directly from a specially equipped vehicle. Sales agents visit points of sale by van, sell the product and deliver it in real time.

We have also published a separate article explaining van selling in detail. You can read it at the link below:

https://salesdoc.io/vanselling-nima/en

Pre-selling

Pre-selling is a sales method in which the sales agent places the order first and a forwarder delivers the product to the store later.

The difference between van selling and pre-selling:

• Pre-selling — the order is placed first, then delivered.

• Van selling — the order is placed and the product is delivered at the same time.

Van selling is very effective when working with FMCG and small stores.

Strike Rate

Strike rate shows what percentage of an agent's planned visits turned into actual orders or sales.

Formula: (Stores ordered ÷ Total stores visited) × 100%

Example: an agent visited 50 stores and took orders in 35, giving a strike rate of 70%.

If this value is low, there may be a problem with the assortment or with agent behaviour. You can also learn more about strike rate in this article.

Coverage

Coverage shows how many of the potential customers in the market you are actually working with.

Formula: (Number of active customers ÷ Total potential customers) × 100%

Example: there are 2,000 shops in Tashkent and the distributor works with 1,400, giving a coverage of 70%.

Expanding coverage is one of the cheapest ways to grow a business.

Accounts Receivable

Accounts receivable is the amount a customer owes you.

Example: goods worth 5 million soums were supplied to a store, but payment has not yet been made. That is a receivable.

If receivables grow too large, the company will run into cash flow difficulties.

In Sales Doctor, you can set a receivables limit for each customer.

DSO (Days Sales Outstanding)

DSO shows, on average, how many days it takes to collect payment for products already sold.

Formula: (Accounts receivable ÷ Monthly sales) × 30

Example: monthly sales of 100 million and receivables of 30 million give a DSO of 9 days.

The lower the DSO, the faster you get paid.

Margin

Margin is the percentage of profit that remains after a sale.

Formula: (Sales price − Cost) ÷ Sales price × 100%

Example: a product bought for 10,000 soums and sold for 12,500 soums gives a margin of 20%.

Markup

Markup is the amount added to the cost of a product. Put simply, whatever you add on top of the cost is the markup.

The key difference between markup and margin:

• Markup is calculated relative to cost.

• Margin is calculated relative to the selling price.

As a result, the margin is always smaller than the markup.

Inventory Turnover

Inventory turnover shows how quickly the stock in your warehouse is sold and replaced.

Formula: Sales volume ÷ Average inventory balance

Example: monthly sales of 50 million and an average warehouse balance of 10 million mean the stock turns over 5 times a month.

When turnover is fast, your capital works efficiently.

OOS (Out of Stock)

Out of stock means an item is not available for sale.

Example: a customer comes in, but the product they want is not on the shelf. That is out of stock.

For a distributor, out of stock means lost sales.

KPI (Key Performance Indicator)

KPIs are the key indicators used to evaluate employee performance.

Example:

• 500 million in sales per month

• 25 visits per day

• Total receivables ≤ 15 million

KPIs are set separately for each position.

AKB (Active Client Base)

AKB is the number of active customers who made purchases during a given period.

Example: 250 stores placed orders in one month, so AKB = 250.

A fall in AKB can be a sign of trouble in the market.

ROI (Return on Investment)

ROI shows how much profit was earned relative to the amount spent.

Formula: (Profit − Cost) ÷ Cost × 100%

Example: 10 million was spent on a marketing campaign and it brought in 35 million in additional sales, giving an ROI of 250%.

POSM (Point of Sale Materials)

POSM are promotional materials placed at the point of sale.

Example: banners, price tags, special shelves, stands, booklets and flyers.

Good POSM grabs the customer's attention and helps increase sales.

SOV (Share of Visibility)

SOV is the share of shelf space your product occupies at the point of sale.

Formula: (Shelf space occupied by the product ÷ Total shelf space) × 100%

Example: if the shelf is 4 metres long and your product takes up 1 metre, your SOV = 25%.

The higher the percentage, the higher the chance of a sale.

CRM (Customer Relationship Management)

CRM is a system for managing customer relationships. It stores:

• calls,

• meetings,

• notes,

• agreements.

Example: a manager writes in the CRM, "Call back on 30 April."

ERP (Enterprise Resource Planning)

ERP is a company-wide management system. Through an ERP you can manage:

• warehouse,

• finance,

• production,

• purchasing,

• logistics.

Sales Doctor can be integrated with other ERP systems.

GT (General Trade)

GT refers to traditional retail outlets.

Example:

• neighbourhood stores,

• mini markets,

• kiosks.

The GT segment requires many agents and a strong control system.

MT (Modern Trade)

MT refers to modern retail chains.

Example:

• Korzinka

• Lust

• Magnum

MT chains have their own contract and listing requirements.

HoReCa

HoReCa is the Hotel, Restaurant and Cafe segment. This channel includes:

• restaurants,

• hotels,

• cafes.

This channel needs its own pricing policy and packaging.

The Difference Between a Distributor and a Dealer

A distributor works under an official contract with the manufacturer and is responsible for a defined territory. A dealer can sell products from several different distributors.

A distributor:

• carries more responsibility,

• receives greater benefits.

A dealer works more freely.

Churn Rate

Churn rate is the percentage of customers who stop buying.

Formula: (Customers lost ÷ Customers at the start of the period) × 100%

Example: there were 200 customers at the start of the month and 18 did not buy the next month, giving a churn rate of 9%.

The lower the churn, the more stable the business.

Omnichannel

Omnichannel is an operating model that connects all sales channels with the customer.

Example: a customer:

• messages you via Telegram,

• orders from your website,

• picks up in store.

All of this information is brought together in a single system.

BI (Business Intelligence)

BI is a system for analysing and visualising business data.

Example: through a dashboard, a manager monitors:

• sales,

• KPIs,

• agent activity,

• warehouse status in real time.

GPS Control

GPS monitoring is a system for verifying agents' actual visits. It:

• reduces fake visits,

• strengthens control,

• allows fair evaluation.

For good agents, GPS is a way to prove the work they have done. We have prepared a separate video on how GPS monitoring works on the Sales Doctor platform.

Sales Doctor

Sales Doctor is a sales and distribution platform built for the market of Uzbekistan and Central Asia. It is used by more than 2,000 companies.

Suitable sectors:

• FMCG

• food

• everyday goods

• household chemicals

• distribution companies

The main capabilities of Sales Doctor are as follows:

• Android/iOS mobile app

• GPS monitoring

• Van-selling and pre-selling accounting

• Warehouse management

• Receivables control

• Prevention of out-of-stock situations

• Dashboard

• ERP and 1C integration