Why is a Distribution Management System necessary for companies? Because of the sheer magnitude of a country's population, companies all over the world benefit from having large market potential. This is further enhanced by the presence of a wellestablished distribution network that connects the organized and unorganized sectors of the economy. Because it operates on a low margin & high volume basis, every manufacturing company searches for different methods to reduce costs, expand into new markets, and raise revenue to remain competitive. The manual management of the entire distribution network becomes more challenging for manufacturers when dealing with such a large volume of output and a large number of channel partners. The manual process is carried out in the following manner: 1. The company's dedicated executive will coordinate with Regional Distributors (RD) on a daily basis to track sales and inventories, which will typically be done over the phone or through the mail. 2. The information will be provided by RDs in accordance with their availability and convenience. 3. Manual entry of data into the system is then completed by a company representative before being sent to management for review and corporate decision-making.
The aforementioned procedure is time-consuming due to the large number of RDs it must cover, and it results in a significant amount of time, money, and resources being wasted. For this reason, the use of Distribution Management System is a viable solution. In layman's terms, DMS enables manufacturers to maintain complete control over their distributed distributor network by integrating with their accounting system to make prompt and effective business decisions. There are a variety of Distributor Management software available on the market, each with its own distinct application and features; nevertheless, before selecting one, it is important to conduct a thorough study of the benefits it provides. Consider the following list of short- and longterm benefits that businesses should consider before making a decision to invest:
1. Immediate Benefits:I. Product Linking and SKU Mapping: There is a potential that the item code at the manufacturer's end and the item code at the distributor's end will differ. A DMS should provide the manufacturer with the ability to automatically recognize the difference, align it with distributor data, and map the SKU appropriately.