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Why To Invest In Distributor Management System Software?

Distributor Management System (DMS) is becoming an inevitable and important need for firms to manage distributors around the world.

A distribution management system refers to the process where overseeing the movement of products from supplier or manufacturer to point of sale. It is an overarching terminology that refers to numerous and various works and processes and activities such as packaging, warehousing, inventory, supply chain, and logistics.

Distribution management is a vital part of the business process for wholesalers and distributors. The revenue or profit margins of companies depend on how quickly they will turn over their products. The more the company will sell, the more they can earn, which means a better future for the company.  

The immense growth in Return on Investment (ROI) has been seen by those who have already started using the Distributor Management System. Hence, there has been a significant gap between the traditional distributor’s module and the digital distributor’s module which is constantly increasing.

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Improvement in  Return on Investment  By Using Distributor Management System 

  • 30% faster order to cash cycle
  • 90% improvement in timely deliveries
  • 35% faster in the order frequency
  • 99% increase in order fulfillment
  • 80% faster in product availability
  • 30% speedy order to cash cycle
Distributor Management System

Costs Reduced By Using  Distributor Management System 

  • 30% reduction in leveraged freight procurement
  • 99% reduced order errors
  • 18% reduction in future CapEx spend
  • 91% reduced operational costs
  • 40% reduction in rationalization costs
  • 40% reduced labor arbitrage

Advantages of the Distributor Management System

1. Better Inventory Management

With the support and help of order history, the key feature of analytics offers your company the whole range of data for the possibility of upcoming demand. Hence, your company must replenish your inventory accordingly. Moreover, real-time stock information also helps your company in replenishing the inventory on time. The inventory is also classified as per data, based on the product and service flow. 

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2. Faster order fulfilment

The order placement correctness is driven by the data. The order history of a particular purchaser helps in choosing the right goods and services again. Also, some related goods and services or products that might interest the purchaser are shown as per the order history while placing orders. 

The exact status of the inventory is available for the purchaser to decide and plan the quantity better. Further, the order is processed automatically and instantly within the distribution management software. All this convenience makes the purchaser comfortably loyal to your company. As human interaction and paperwork reduce, overall office and operational costs also reduce. Lesser human involvement in the work also means lesser errors, this reduces order returns.

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3. ERP Integration

The software is synchronized and integrated with accounting software in real-time, so all the calculations and data are happening simultaneously. A powerful invoice management system simplifies tax filing to a great extent. There is not at all and no scope of forgetting anything, as alerts and notifications keep reminding the required actions and processes.

Wholesale distribution is quite a complex business, which requires the involvement of a lot of people of different fields or backgrounds and a lot of processes. Since time immemorial, distributors have been facing lots of losses due to human errors and inefficient sales strategies. Being dependent on a lot of people for each stage eventually takes control out of your company’s hands

The distributor management system helps your company to keep total control. Also, this software helps in maintaining transparency at each and every step to ensure that everything has been happening very smoothly while avoiding any kind of possible conflict. 

Making sure that the right distributor management software is deployed is a critical factor for ensuring maximum advantages and staying ahead of the competition.

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4. Better Trade Schemes Utilisation

?Dynamic pricing helps your company to keep the discounts customized according to the purchaser. Your firm shall be able to sell more to multiple retailers with lesser paying capacity, just by offering lucrative discounts or schemes. 

Your company may also integrate different schemes to provide the best possible sales deal to your loyal consumers and clients. With the help of analytics, your firm will track the performance area-wise and offer schemes or pricing accordingly. 

Traditionally, distributors have been offering discounts and schemes to retailers randomly. With the help of a Distribution Management System, the distributor may get a better idea of the sales and paying capacity of the retailer. It is also helpful and friendly in improving the relationship with the big retailers. 

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If a retailer produces big orders regularly, schemes may be a good gesture to improve the relationship. There will be many creative paths for using these schemes to improve profits and future prospects. Distribution Management System also helps your company assess and analyze better what your firm can improve to retain your existing clients and bring new ones.

5. Improved Payment Collection

Multiple invoices may be generated and produced at once, as everything is system generated. Outstanding payments are also visible for your company to track and take the required action. Moreover, your company will set automatic reminders, so that the pending payments shall be made by the purchaser without the need for any personal communication. 

6. Clarity on Secondary Sales Data

Not just improving the supply chain, an efficient DMS helps enterprises procure all the data among all the distribution channels in real-time which can be transformed into actionable insights to manage stock-out scenarios, improve plan promotions, and increase sales growth. There are a bulk of distributors that are small, unorganized entities that have insufficient capital and tech infrastructure. Several brand distributors think that it’s difficult to maintain data for the various brands they try to manage. A DMS supports you to control promotions and enhance productivity.

7. Consistent Delivery management 

For a consistent sales process, delivery is the most important stage of the supply chain process as there has to be constant interaction among the distributors, warehouse, retailers, and sales representatives. Therefore, an efficient Distribution Management System is necessary. 

There are times when the sizable distributor does not have the actionable database and information. If one is facing the absence of current data on orders, inventory, claims and product returns leading to stockouts or overstocking could be resolved through a Distributor Management System where you receive accurate and reliable data on secondary sales.

8. Centralized communication platform 

An engine which drives complete sales and distribution processes with a streamlined interaction where all the parties associated with the sales and the supply representatives can synchronize without any interruption on a single platform. In order to reach out to the rural areas, it is imperative to include several levels in the distribution process, further including cost and inefficiency. Even in case of any limited access to the internet, an efficient DMS streamlines all distribution workflows by providing real time data.

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9. Cost Savings

While there is an initial investment in implementing DMS software, the long-term cost savings from improved efficiency, reduced errors, and optimized inventory management can outweigh the initial expenditure, leading to improved profitability.

10. Data Analysis and Reporting

DMS software provides reporting and analytics tools that allow businesses to analyze sales performance, track key metrics, and identify trends, enabling informed decision-making and continuous improvement.

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By streamlining the full sales stages & distribution channel, SalesBabu FMCG CRM will  help FMCG companies to achieve greater profit margin levels and rectify bottlenecks in the sales process and stages.