Why is it vital for businesses to have a Distribution Management System?

 

Having a broad market potential is advantageous for firms all over the world because of the sheer size of each country's population base. Moreover, the presence of a well-established distribution network that connects both the organised and unorganised sectors of the economy contributes to this positive outcome. Since every manufacturing firm runs on a low margin and high-volume basis, every manufacturing company looks for new and innovative ways to lower costs, expand into new markets, and increase revenue in order to remain competitive. When dealing with such a high volume of production and such a large number of channel partners, manufacturers find it increasingly difficult to manage the whole distribution network on a manual basis.

In order to complete the manual procedure, follow these steps:

·         To track sales and inventories on a daily basis, the company's dedicated executive will communicate with Regional Distributors (RD) by phone or mail.

·         In line with their availability and convenience, registered dietitians (RDs) will give the information.

·         A firm representative then completes the manual entry of data into the system before forwarding it to management for assessment and decision-making on a company-wide basis.

·         A huge amount of time, money, and resources are squandered as a consequence of the time-consuming nature of the aforementioned operation, which is owing to the vast number of RDs that it is required to cover.

As a result, the implementation of a Distribution Management System is a realistic option. Putting it another way, a distribution management system (DMS) allows manufacturers to keep total control over their distributed distributor network by connecting with their accounting system, allowing them to make timely and efficient business choices.

Despite the fact that there is a wide range of Distributor Management software options available on the market, each with its own particular application and features, it is necessary to do a full investigation into the benefits each one offers before making a decision on which to choose. Evaluate the following list of short- and long-term rewards that organisations should consider before deciding whether or not to invest in a certain project.

 

1. Immediate advantages include-

 

Product linking and SKU mapping are the first two steps.

There is a possibility that the item code at the manufacturer's end and the item code at the distributor's end will be different from one another. In order for a manufacturer to be able to automatically notice the difference, align it with distributor data, and map the SKU properly, the DMS must give the capacity to do so.

 

 

 

Two-fold comprehensive control on the activities of distributors.

A competent DMS system will provide you comprehensive control over your distributor's MRP, item alteration, ledger alteration, backdate entries, negative stocks, reorder levels, and any other associated processes, among other things.

 

Inventory control is the third step.

A perfect DMS should aid manufacturers in avoiding situations in which they run out of supplies, so guaranteeing that no business is lost as a result of this. Additionally, it offers them with the ability to monitor stock movement from the distributor's end, visibility of damaged and undamaged items, and the ability to maintain the bare minimum of stock across a number of different distributors.

 

Sales Force Automation (SFA) is the fourth and final step.

The search for sales force automation software is a constant endeavour for any firm. An efficient DMS software should, as a result, enable integrated sales force automation to verify sales executive visits, track secondary and tertiary sales, monitor the brand presence, analyse market rivalry, and do other duties such as market research.

 

In the Long Run, there are several advantages

 

Targets vs Measurement of Fulfilment

By showing objectives vs actual fulfilment in a Distribution Management Software, you may design a stronger sales plan and obtain more precise predictions, which will help you increase your profits.

 

Increased Productivity is the second benefit.

By automating numerous channel activities like as order processing and real-time notification of distributor sales, organisations may save a substantial amount of time. Instead of wasting time on coordination and follow-up, this time may be put to better use by performing other productive duties.

The next point to mention is channel management.

One of the basic needs of a solid DMS is the ability to track the success of certain channel partners by tracking the data from their respective sales channels. As a result, businesses are better equipped to make judgments and provide price concessions to certain distributors in order to enhance sales.

 

 

 

A Distributor Ecosystem That Is Long-Term

In order to facilitate efficient distributor claim management and scheme administration, you would need to keep accurate track of the secondary sales you make. It will also help companies to achieve faster stock replenishment, which will result in a more satisfied distributor eco-system as a consequence of the enhanced efficiency of the distribution network.