Additional Benefits of Distribution Management System

7 Benefits of Distribution Management System (DMS)

Prior to entering the market, every product must pass through many phases and adhere to a certain procedure, beginning with production and ending with distribution. When the whole process is completed, the product is supplied to the customer via a wholesaler and retailer distribution network.

In the context of the distribution of completed goods, advanced distribution management system (DMS) is concerned with the stages in the supply chain that correspond to the distribution of finished goods. Manufacturing, packaging, inventory management, warehousing, and transportation facilities are some of the processes involved.

To effectively manage the whole supply chain and meet the needs of customers, distribution management software in India has become essential in recent years. It assists businesses in monitoring secondary sales all the way up to the point of sale, allowing them to simplify important aspects of their channel sales, such as quicker 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 benefits is likely to be infinite, we have compiled a list of the most significant ones:

1. Availability 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 supplied by your distributors at a predetermined frequency, which is neither real-time nor genuine, 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 awaiting fulfillment, the number of orders being returned by retailers, and so on. Because of this, distribution management software is required in order to effectively manage your distribution network.

2. Remote location monitoring

With India's rapidly growing revenue growth, FMCG firms are expanding their distribution networks to nearly all of the country's districts in order to expedite the flow of products from the production facility to the retailer. Because of the difficulties associated with high volumes, time management, and the geographical isolation of the distributor, it may be difficult to get complete information on your product movement from all of your distributors at times. With distributor management system in place, you may have all of the information at your fingertips, regardless of whether a distributor is based in the North-east or semi-rural parts of West Bengal or South India.

3. A significant benefit for your distributors

It is true that installing a DMS is a solution that is very beneficial in terms of simplifying and automating a large number of their daily operations. Automation of all types of products movement, system-generated invoicing, information of overdue payments, and intelligent notifications are just a few instances of how the application will make a distributor's job simpler.

4. Claims are resolved more quickly.

Your distributors will also profit from the DMS because of the faster turnaround time for claim settlements that they will experience. With return policies, damaged receipts, and everything managed via DMS, distributors and the business will always have visibility over deliveries and payables.Moreover, by submitting claims online via DMS, all claims would be completed considerably faster than they would be if they were submitted through a manual method, which would need several rounds of changes between both parties.

5. Improved promotion and scheme management

Promotion and incentive programs are two of the most important foundations of every company.

Companies often invest a significant amount of money on these kind of endeavors. Distributor management system guarantees that all necessary checks and balances are performed at the time of invoicing and that you have a comprehensive understanding of the performance of each and every scheme.

6. Faster stock replenishment

It goes without saying that it is critical for FMCG businesses to maintain optimal stock levels at various touch-points, including stockists, distributors, retailers, and other distribution channels. Well, DMS provides you with complete insight into your inventory, including stock levels, expiration dates, batch numbers, returns, and more. Significant changes may be obtained well in advance at distributor locations, and replacement can be provided considerably sooner than in the past..

7. Production planning that is effective

In an ideal scenario, your distributor management system would be linked 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. That absolutely guarantees improved production planning, which in turn results in decreased or zero waste of your production resources.