Why Do You Need a Distribution Management System for Your Brand
In the context of the distribution of completed goods, the distribution management system (DMS) is concerned with the phases in the supply chain that correspond to the distribution of finished goods. Manufacturing, packaging, inventory management, warehousing, and transportation facilities are some of the steps involved.
To effectively manage the whole supply chain and meet the needs of consumers, distribution management software in India has become essential in recent years. It assists firms in tracking secondary sales all the way up to the point of sale, allowing them to simplify important components of their channel sales, such as faster stock replenishment, lower inventory carrying costs, and improved production planning.
Let's take a look at the benefits of using a Distribution
Management System. While the number of explanations and benefits is likely
to be unlimited, we have compiled a list of the most significant ones:
1. Visibility in real-time
The need for clarity on real-time visibility
of all business data from your distribution networks is critical for you as an
FMCG firm. Without a DMS, you will be forced to rely on offline data provided
by your distributors at a predetermined frequency, which is neither real-time
nor legitimate and will result in increased costs. However, you should not make
any compromises on some of the most important facts, such as the amount of
current stock available with distributors, the number of orders pending
fulfillment, the number of orders being returned by retailers, and so on. As a
result, a distribution management system is essential for effectively
managing your distribution.
2. Remote location monitoring
With India's rapidly increasing revenue
growth, companies are expanding their distribution networks to practically all
of the country's districts in order to expedite the flow of products from the
manufacturing facility to the retailer. Because of the difficulties associated
with huge volumes, time management, and the geographical isolation of the vendor,
it might be difficult to have complete information on your product movement
from all of your partners at times. It is possible to have all of the data at
your fingertips if you have distribution
management software in place, even if a dealer is operating from a
remote location.
3. A significant benefit for your distributors
It is true that establishing a DMS is a
solution that is quite beneficial in terms of streamlining and automating a
large number of their daily procedures. Automation of all types of products
movement, system-generated invoicing, details of pending payments, and
intelligent warnings are just a few instances of how the program will make a
distributor's job easier.
4. Claim settlements are more expedient
Your distributors will also profit from the
DMS because of the faster turnaround time for distributor
claim management that they will experience. Return schemes, damaged
receipts, and everything else that can be automated by DMS will ensure
that distributors and the company are always in the know regarding deliverables
and payables. Furthermore, with online claim filing through DMSS, all claims
will be finalized considerably faster than with a manual approach, which
typically consists of several rounds of adjustments between the two
parties.
5. Efficient promotion and scheme management
Promotion and incentive programs are two of
the most important cornerstones of every business. Companies typically invest a
significant amount of money in these kinds of endeavors. The distribution
management system guarantees all essential checks and balances at the time of
invoicing and that you have a comprehensive understanding of the performance of
each and every scheme.
6. Rapid Restocking
It goes without saying that it is critical
for companies to maintain optimal stock levels at various touch-points,
including stockists, distributors, retailers, and other distribution channels.
Well, DMS provides you with complete visibility into your inventory,
including stock levels, expiration dates, batch numbers, returns, and more. It
is possible to obtain major alterations and supply replenishment at distributor
sites far earlier than in the past.
7. A well-planned production schedule
In an ideal scenario, your distribution
management system (DMS) would be coupled with the demand planning
module of your enterprise resource planning system. Following that, the
production planning engine of your ERP will have clear information on the
real-time stock level, pending orders for fulfillment at your distribution
locations, and a variety of other factors. With this, you may be confident in
superior production planning, which will result in less or no waste of your
production resources.
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