Distribution Management may appear as a simple term for many, which means managing the distribution of a business by supplying products, collecting the payments, and handling returns (if any). But, in actual distribution management is more than the mentioned basic activities, understanding the complexities and challenges in modern times. Moreover, in recent times of stiff competition and more than one company manufacturing and selling the same goods and services, it has become crucial for businesses to have an efficient distribution management system (DMS) to monitor, control, and efficiently leverage the supply change resources.
Why is DMS required?
Distribution Management System is a one-stop solution to manage all the distribution need and model for a business. It allows businesses to manage the large stock units with streamlined processes attached to it like maintaining payment records and measure performance to increase efficiency.
Having your distribution management system in place you will be able to:
- Manage orders more efficiently: The system will make it easy to handle and manage past and present orders. As a retailer, you will be able to add, modify & cancel with the distributors in the loop. This feature connects the systems utilized by various parties involved in processing an order.
- Add more new retailers: As a distributor, you can view and monitor your retailer’s activities and can even add new retailers, study customer demands, and provide them with the support and assistance they need.
- Manage returns and claims well: Managing and tracking the return of goods is much easier with the DMS, along with announcing schemes and discount claims.
- Inventory management: With DMS, managing inventory becomes much easy and efficient. All stakeholders (head office, distributors, and the sales team) can view and manage inventories with ease.
- Manage distributor stock: With DMS, you have better control of real-time stock with the distributor and retailer. This enables you to modify, re-order and view in-transit orders also.
- You get detailed reports: All detailed and overall reports, you will get regularly and as and when required. The distributor can also access the reports and discuss them with the sales team and with retailers.
- Track performance: Track the performance of everyone – distributors, retailers, and even your sales team. Make a real-time analysis and take actions wherever necessary immediately.
An efficient distributor management system is crucial for all businesses producing goods that are fast-moving, irrespective of their size and quantity. Some of the core benefits that you will enjoy with the distributor management system are optimized utilization of resources, accurate inventory management, precise order management, accurate pricing and well-aligned promotions, quick contract of documents and its approvals, managing hassle-free delivery and returns, creating a common platform for all parties, efficient payment collection system, easy management of any claims by distributors, setting proper targets and achieving them, effective reporting system, fostering long-lasting relationships and a win-win situation for all.
Once a deal is done, and business starts to roll, distributor management skills become the key for the Supplier to exert positive influence. As a supplier must always remember that a distributor is not your employees, but is also a business owner like you.
