Why Do You Need a Distribution Management System for Your Brand

Why Do You Need a Distribution Management System for Your Brand?

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

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

1. Visibility 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 provided by your distributors at a predetermined frequency, which is neither realtime nor legitimate 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 pending fulfillment, the number of orders being returned by retailers, and so on. As a result, a distribution management system is essential for effectively managing your distribution.

2. Remote location monitoring

With India's rapidly increasing revenue growth, companies are expanding their distribution networks to practically all of the country's districts in order to expedite the flow of products from the manufacturing facility to the retailer. Because of the difficulties associated with huge volumes, time management, and the geographical isolation of the vendor, it might be difficult to have complete information on your product movement from all of your partners at times. It is possible to have all of the data at your fingertips if you have distribution management software in place, even if a dealer is operating from a remote location.

3. A significant benefit for your distributors

It is true that establishing a DMS is a solution that is quite beneficial in terms of streamlining and automating a large number of their daily procedures. Automation of all types of products

movement, system-generated invoicing, details of pending payments, and intelligent warnings are just a few instances of how the program will make a distributor's job easier.

4. Claim settlements are more expedient

Your distributors will also profit from the DMS because of the faster turnaround time for distributor claim management that they will experience. Return schemes, damaged receipts, and everything else that can be automated by DMS will ensure that distributors and the company are always in the know regarding deliverables and payables. Furthermore, with online claim filing through DMSS, all claims will be finalized considerably faster than with a manual approach, which typically consists of several rounds of adjustments between the two parties.

5. Efficient promotion and scheme management

Promotion and incentive programs are two of the most important cornerstones of every business. Companies typically invest a significant amount of money in these kinds of endeavors. The distribution management system guarantees all essential checks and balances at the time of invoicing and that you have a comprehensive understanding of the performance of each and every scheme.

6. Rapid Restocking

It goes without saying that it is critical for companies to maintain optimal stock levels at various touch-points, including stockists, distributors, retailers, and other distribution channels. Well, DMS provides you with complete visibility into your inventory, including stock levels, expiration dates, batch numbers, returns, and more. It is possible to obtain major alterations and supply replenishment at distributor sites far earlier than in the past.

7. A well-planned production schedule

In an ideal scenario, your distribution management system (DMS) would be coupled 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. With this, you may be confident in superior production planning, which will result in less or no waste of your production resources.

Conclusion: A significant amount of time and money may be saved by implementing the software, which is beneficial to the growth and profitability of your firm. Even small- and medium-sized businesses (SMEs) should invest in distribution management software in order to run their operations smoothly and reap significant rewards.