Importance of Sales & Distribution Management System

Sales & Distribution Management Software

The Distribution Management Software [DMS] refers to the process of overseeing the supply chain from the transportation of products by the producer to the point of sale. It covers businesses such as orders, inventory tracking, supply, customers, packaging, warehousing, and logistics. All company operations are integrated into a single program and organized.

DMS also has a part in consumer appeal and satisfaction. It provides longevity and a competitive edge for the organization. It helps to do lucrative activities. 

The latest distribution management systems collect and exchange essential information to analyze growth and competitive prospects in the business. The distribution consists of two categories:

• Sales Distribution
• Logistics

Distribution Process

The prompt delivery of products and services is ensured by an effective distribution network. This implies that companies can satisfy their customers and achieve large profit margins.

The fundamental process for the functioning of a distribution system is:

1. Orders from merchants or producers are received (based on consumer demand).
2. The firm accepts or rejects the orders after reviewing the inventory.
3. To meet the customer's requirements, all departments collaborate.
4. A warehouse categorizes the stock. The shipment is loaded and delivered after the payment arrangements are verified.

In conjunction with several other systems, everything is monitored and saved by distribution management software.

This channel includes producers, retailers, dealers, wholesalers, and end-users.

Importance Distribution Management Software

Management of distribution directly influences the organization's profit. Sales channels must be studied in order to understand the significance of DMS.  The firm creates numerous sales and marketing strategies in order to reach a broader audience.

The distribution network is controlled and monitored using DMS. It saves all customer, stock, and sales data and information. The data can be accessed, analyzed, and reported more easily due to DMS.

DMS incorporates CRM elements to ensure client satisfaction. Less staff, lower operating costs, less processing time, equal more productivity, and greater sales.

Advantages of DMS

1. Sales and Distribution Management Software maintains all information in order.
2. Easier for shoppers as all information is available in one spot.
3. Less any type of mistake about goods delivery timing, location, or amount.
4. Low management expenses for the company due to lower personnel requirements. Distribution Management Software administers several features.
5. Efficient time management.
6. Inconsistencies between real numbers and recorded numbers can be identified clearly.
7. Better stock surveillance.
8. Improving the effectiveness and correctness of the customer's services.
9. Optimal use of resources.
10. Fast processing and approval of contract documents. Less paperwork as all is digitized.
11. Returns are managed online, without a fuss.
12. Higher Sales target achievement.
13. Efficient reporting between manufacturer, intermediary, and customers and vice versa.

 

The ultimate aim is to efficiently deliver the raw materials or products to the right place at the right time. Thus, a distribution management system helps with:

 

1.      LOGISTICS

• Route Management
• Vehicle Management
• Load Management

 

2.      ORDER MANAGEMENT

• Sales Order module
• Sales Order Approval
• Sales Order Posting for Invoice
• Purchase Order Management

 

3.      BATCH

• Batch wise Inventory
• Batch wise stock ledger
• Batch wise valuation
• Batch + MRP control

 

4.      SALESFORCE AUTOMATION

• DSR-Android APP
• DSM
• Logistic
• Payment Authorization

 

5.      FINANCIAL ACCOUNTING

• Balance sheet
• Trial balance
• Profit and Loss A/c
• Bank Reconciliation
• Tax Management

 

6.      SCHEME MANAGEMENT

• Scheme master
• Slab wise scheme
• Scheme for free Qty
• Scheme for value discount
• Scheme for gift Item
• Scheme Calculation Auto / Manual
• Scheme claim Vs actual report

 

7.      PAID BALANCE

• Outlet receivable
• Supplier payable
• Post-dated cheque management
• Bounce cheque management
• Re-Deposit cheque Management
• Salesman wise outstanding report
• Outlet wise outstanding aging report
• Supplier wise outstanding report

 

8.      INVENTORY

• Stock Adj.- Receipts
• Stock Adj.- Issues
• Breakages / Damages
• Multiple Godown
• Stock Transfers – Location
• Stock Adj.-Batch
• Inventory Reports
• Stock Valuation
• Gift Item Inventory

 

That is why a Distribution Management Software's function is extremely significant and should be taken into consideration in every company to improve its performance, generate greater incomes, and reduce costs.