In the contemporary business landscape, the Distributor Management System (DMS) has emerged as a critical component within the FMCG & Consumer Goods industry, facilitating enhanced efficiency and maximal productivity within the dealer/distributor domain. Given the extensive networks of distributors and retailers that FMCG companies engage with, spanning vast geographical regions, traditional methods of data maintenance and transfer are proving insufficient to uphold transparent transactions and glean insights into secondary sales.
It becomes tough to maintain transparent dealings and obtain insights about secondary sales with obsolete ways of maintaining and transferring data. With evolving advanced technology, integration of distributor management systems has become crucial for inventory management, getting complete visibility on secondary sales execution and insights about schemes and trade offers.
Tatic management of the supply chain is critical for consumer goods companies to ensure optimal market expansion as well as to build long-term relationships with the distributors. A robust distributor management system supports managing every stage of the supply chain to add larger value to a business on its route to market. Moreover, for FMCG companies it is a significant necessity due to the following reasons:
Secondary Sales Transparency: Transparency of real secondary sales execution is key to knowing exactly what the status of sales execution is, and it also gives input to various strategies such as investments at the store level, the performance of the team and also the effectiveness of trade schemes.
Curtailing Pilferage: Better and an efficient inventory management solution with a powerful distributor management system helps companies to minimize costs on pilferage and also on working capital in case of overstocking.
Maximizing utilization of schemes and offers: Complete transparency of secondary sales data gives awareness of the utilization of offers and schemes by distributors. By integrating data in real-time, companies can take quick actions if the offers and schemes are not being applied by the distributors.
Combine business operations: As DMS provides a centralized and unified platform of communication for distributors and the company, it bridges and combines the communication gaps and integrates all the business operations in a single platform.
Boost distributor experience: Distributor management software provides organized order management and automated claims and reward management, improving the distributor’s experience and thereby ensuring long-term relationships.
Read More – Sales Tracker – An essential tool for your sales operations
One of the major challenges for FMCG companies while introducing a distributor management system to their distributors is that they are resistant to adopting DMS software since they typically deal with products from multiple brands. To add to that, many distributors prefer to go for using conventional tally or excel for reporting secondary sales to companies.
Let’s take a closer look at the challenges to infer solutions.
The solution to all these challenges lies in the deployment of powerful DMS Software which caters to the versatile requirements of the distributor landscape. Consider a scenario where a distributor is using excel or tally to account for secondary sales data, a simple tally plugging can help brands pick up the required secondary sales data without any interference to the distributor.
Putrefiable Substance
Even during a proper distribution management system, time is important when you are dealing with sensitive and perishable products like medicines and food products. In case of delivery even the slightest delay in shipment can cause your stock to get damaged and unsellable, leading to financial loss in the business.
Purchasing Pattern
An effective distribution management supports improved customer service by considering the buying habits of the prompt customers as the demand and supply in sales has a direct influence on the distribution patterns. In such a case tracking them can support your plan appropriately.
Purchase Preference
Though there is an organized distribution management system, a manufacturer’s or retailer’s demand can diversify accordingly which can affect the distribution system in your business.
Enhanced Conveyance
With robust distribution management, one must utilize the most out of every delivery which means making sure that your trucks are complete to their optimum capacity and that they are on the correct routes for delivery on time.
Seasonal Prediction
The goals and challenges of your company are that certain stocks sell better at specific periods of times. Hence, there’s a need to consider what product mix will be of best use.
Today in the market there are several FMCG distributor management system providers, it can be tricky and challenging for you to choose the best DMS that actually helps you manage your supply chain based on distribution nuances. For your business below are a step-wise guide for choosing the best distributor management system.
Read More – Channel Sales – Definition, Pros and Cons, Strategy
Conclusion
Selecting an efficient DMS (Distributor Management System) is an important decision for FMCG businesses. They look to optimize their distribution operations and drive growth.
You can make an informed choice that aligns with your business goals and objectives by considering key factors such as operational needs, scalability, integration capabilities, customization options, user-friendliness, mobile accessibility, data security, and vendor reputation,
With the right DMS in place, you can streamline operations, enhance visibility, and unlock new opportunities for success in your distribution network.
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