How Might A Distribution Management System (DMS) Impact The Industry?

Companies will need to continually rise above the myriad hurdles they confront on a daily basis in order to ensure that their products are available on the right shelf at the right time in an ever-changing market environment. One method of accomplishing this is to get more traction through the enormous network of distributors, super stockists, and intermediaries already in place.

It is imperative that channel partners have access to the most up-to-date tools and technology, as many still rely on manual inventory tracking tools, sales billing handbooks, and other outdated methods.

In order to solve these issues, many domestic and multinational corporations (MNCs) have gradually shifted to a more comprehensive and transparent Distribution Management system during the last few years. Let's take a step back and define what a Distribution Management system is before we get into its potential.

The Distribution Management System serves as a link between manufacturers and merchants. An all-in-one solution that can handle everything from collecting sales orders to invoicing to monitoring claims.

 

The perquisites of a Distribution Management System (DMS)

 

Using a distribution management system, you may improve the efficiency of your supply chain's operations. For both brands and distributors, this means a slew of immediate advantages, including:

 

1.    The veracity of the information

Traditionally, distributors continue to follow the same age-old format and standards that their forebears followed, and they employ simple computing to keep track of their records. Although less stressful, this approach is nonetheless chaotic and error-prone. A distribution management software is an automated solution that allows you to conveniently track orders, claims, invoices, stock details, and other important information. The data offered by the DMS is accurate and authenticated, and it assists distributors in making future decisions about what to stock, how many claims are still waiting, how many orders have not been fulfilled, and so forth.

 

2.    Real-time decision-making

It is possible to make quick decisions and forecasts thanks to the information offered by the DMS, which includes several KPI Dashboards and Demand-Supply analyses. The DMS can also be used to obtain information such as in-stock statements, creditor limits, and stock reordering.

DMS enables marketers to maintain complete control over pricing and promotional programs while maintaining the flexibility to manage diverse retail channels or classes on a case-by-case basis. It also enables them to maximize outlet penetration by implementing the appropriate schemes to all channel partners and providing them with real-time fulfillment information. Automated replenishment provides brands with the most efficient method of replenishing their inventory and preventing stockouts from occurring.

 

3.    Increased Revenues

In addition to increasing sales, a DMS will cut the amount of time necessary to carry out operational activities to a significant degree. Distributors can enhance their sales by employing the analytics of the various information offered by a Sales and Distribution Management Software, such as key performance indicator trends, zone-wise demand trends, and so on.

Brands benefit from a single cycle of Demand Capture and Execution, which helps them maintain operational continuity. They can capture demand ten times faster than competitors, and they have real-time visibility into prices and schemes. Increased liquidity and inventory can be achieved by implementing agile and robust processes for speedier claim settlement.

 

4.    Affordability and Efficiency

A distribution system goes through several steps, such as the generation of challans, order confirmation, invoicing, and so on. It is possible to increase the cost of working capital by appointing personnel for each stage. Automated data acquisition saves costs and time consumption at many stages, thereby avoiding the rising costs of capital and ensuring hassle-free operations in the distribution process.

 

5.    Streamlined inventory management

A good DMS provides access to data-driven insights, which helps distributors to manage their stock more efficiently while spending the least amount of money possible on technology.

A full-service Distribution Management solution provides visibility into a distributor's inventory management, which displays batch-wise, real-time aging of stock in order to reduce returns and increase profits. Direct integration with secondary sales orders guarantees distributors have enough inventory to meet the store demand.

 

6.    Tax Automation

The calculation of taxes is one of the most time-consuming procedures that each distributor has to perform. A fully-fledged DMS can completely eliminate this headache from your life. It is pre-configured with Tax Compliance procedures, which allows it to generate accurate invoices. E-invoicing and e-way, which are both integrated, make it simple for distributors to handle returns

 

7.    Accessibility in Outlying Areas

A distribution management system (DMS) is ideal for distribution partners who can afford to invest in a computer to run the application. The reason for this is that most DMS systems require an internet connection in order to sync individual app data with the master database and provide real-time visibility to the organization. In rural and other remote areas, however, where the only inexpensive gadget for distribution partners is a mobile phone, what can businesses do is improvise.

Brands can gain visibility in the long tail of the distribution chain with the help of a distribution management software solution. Key modules such as Goods Receipt, Inventory Management, Van Booking, Billing, and Purchase Order Request are included in the DMS, allowing sub-stockists in rural locations to do their essential jobs efficiently.