Distributor Management System supports supervising the supply chain by managing promotions, invoicing, stock, distributor claims, and many more. A distributor’s role has incrementally become necessary due to the ongoing product overflow and saturation of retail.
A good Distributor Management Systems contour all distribution workflows and activities, enhances supply chain efficiency, eradicate stock-outs and overstocking, and allows enterprises to access real-time data from distributors.
What is a distributor management system (DMS)?
Emerging markets are vast and complex, with thousands of distributors, millions of retail outlets, and billions of dollars in potential transactions. Manufacturers have to manage this vast network of big and small distributors while juggling the conflicting needs of different channel partners.
But how can manufacturers manage this with limited market data and insight? How will they gain control? How will they manage people and promotions while keeping costs low? And, most significantly, how can we make it simple?
The solution is a Distributor Management System, which is versatile, innovative, and straightforward. A DMS (Distributor Management System) manages your downstream supply chain and helps you control promotions, improve productivity, streamline inventory and sales processes, and manage distributor claims – you get accurate, reliable secondary sales data. Simply put, it is the engine that powers your sales and distribution efforts.
What is the importance of DMS?
To comprehend the significance of using a Distributor Management System, we must first examine the critical challenges of Channel Sales Management in India.
- Most distributors are small, unorganized businesses with insufficient capital and technological infrastructure.
- Data management for the various brands handled by multi-brand distributors is complex.
- Large distributors are missing out on actionable data and information.
- To reach rural areas, several levels of the distribution chain must be added, adding cost and inefficiency.
- Due to a lack of real-time data on orders, inventory, claims, and returns, stock-outs or overstocking occur.
- Internet penetration is low, and logistics infrastructure is subpar.
This lack of information management causes a lag in your entire sales pipeline.
Things to Know about Distributor Management System
All data is visible in real-time:
When you have real-time visibility into all distribution channels’ data, it empowers you in various ways, including sales analytics, stock-out scenarios, stock movement, superior procurement planning, scheme management, and much more.
A brand without a DMS must rely on offline data from its distributors. The distributor’s offline data is neither real-time nor authentic. As a result, you lose all of the advantages of real-time and giving control to the distributors.
Quick claim resolution:
Distributors have more time to settle claims online with the help of DMS (Distributor Management System) because they receive updates faster. Almost anything can be resolved instantly with the help of DMS, whether it is returns, damaged receipts, schemes, or anything else. The best part is that transparency is maintained at all levels; everyone is on the same page regarding receivables and payables.
Faster replenishment:
Stock replenishment becomes more accurate because DMS provides precise and real-time data on stock, expiry date, batch number, returns, and so on, resulting in less damage to goods. As a result, profits will rise. You can also use these analytics to predict restocking needs and plan for them accordingly.
Improved promotion and scheme management:
Promotions and schemes have a powerful impact on your company’s profits. However, there have always been some challenges, as it is difficult to know if the promotions and schemes are reaching the retailers. Understanding the benefits of a specific advertising or plan is also tricky. The Distributor Management System provides you with accurate information in real time.
Standardization of processes:
DMS is a unified system used by everyone involved in the distribution process at all levels. As a result, there is only one version of data that anyone can question. Furthermore, unified data helps to streamline all processes and reduces time spent on unnecessary meetings and other forms of communication.
How does the distribution management system work?
The distribution management system (DMS) is a computerized system that aids organizations in managing goods and services distribution. The DMS is intended to simplify the process of distributing goods and services by automating many of the tasks involved.
The DMS can be used to manage the distribution of physical goods, such as products that must be shipped to customers, or digital goods, such as software updates or digital content. A warehouse management system (WMS) is typically included with the DMS to assist organizations in keeping track of inventory levels and locations.
What challenges do manufacturers need to overcome?
Some of the issues that can arise before the implementation of a DMS can be seen at a more granular level here:
- Manufacturers must manage vast networks of large and small distributors to achieve desired coverage across multiple regions.
- Penetration of rural or otherwise difficult-to-reach areas may necessitate several additional levels in a distribution chain, increasing cost and inefficiency. Manufacturers may need to become more familiar with distributor operations in these more niche, localized regions and thus fail to provide appropriate incentives or support.
- Multi-brand Distributors may need help gathering the data required by Manufacturers across the various brands they distribute.
- It quickly becomes difficult for the Manufacturer to determine how much inventory the distributor has versus how much has been sold.
- As a result, managing production with limited data and insight into what’s happening in the field can take much work for manufacturers.
- Stock-outs and overstocking could occur due to a lack of real-time data on orders, inventory, claims, and returns.
- Manufacturers need help managing Trade Promotions through Distributors with limited insights, resulting in wasted marketing spend.
Taking on all these challenges at once is a herculean task, especially given the FMCG industry’s high demand and rapid movement. This is why collaboration and cultivating a mutually beneficial relationship between the Distributor and Manufacturer are so critical.
Conclusion
Because of the ongoing product overflow and retail level saturation, a distributor’s role has become increasingly important. The use of a best distributor management system (DMS) to automate FMCG distribution is critical to its success.
You can achieve high performance in even the most fast-paced and fragmented marketplace if you use the right distributor management system software platform to power your sales and distribution activities.
Wayne Probert is a senior reporter at Zobuz, covering state and national politics, and he is a grantee with the Pulitzer Center on Crisis Reporting. Before joining Zobuz, he worked as a freelance journalist in Kentucky, having been published by dozens of outlets including NPR, the Center for Media.
