In the figure above, the brand (company) manufactures a number of products and supplies them to the distributor. And the distributor supplies it to the retailer and so goes the whole process.
So let us take XYZ as the brand which has its multiple distributors like Distributor A, Distributor B, Distributor C and Distributor D, and many more distributors.
A separate login id of the application is given to the distributors. There are two basic modules in SalesBabu DMS viz., salesmen tracking and product distribution management.
The brand supplies a number of manufactured products to its distributor. Say the distributor currently has 150 numbers of a product in the stock and the company supplies 50 more numbers to him.
Now the current stock available with the distributor is 200. By the distributor as and when the products are supplied to the retailer, his stock inventory is reduced and the distributor is accountable for making payment to the company and asking for new supply from the organization.
On a cloud-based DMS software, the stock is maintained, inventory is maintained, and there is order booking and order supply, collection activity, all is happening and visible on a real-time basis.
Suppose there are 150 items already with the distributor, the company supplied him 50 more adding to 200 items. This way the inventory of the distributor increased as many items are supplied to him by the company whereas, the company’s inventory gets reduced.
Now, in the next step the retailer placed an order of 10 items, the distributor supplied the order to the retailer, the stock available with the distributor is now 190 items. Payment is done by the retailer to the distributor. If the cost for each item is Rs. 100, the total cost to be paid is Rs.1000. The retailer goes for partial payment and pays Rs.400 to the distributor. Hence, the collection activity is done on the application itself.
The distributor ought to pay back to the company its balance amount which is due. Once the goods have been sold and payment received because SalesBabu DMS can be integrated with the tally at the distributor level, it eventually gets complete visibility of the order execution process. The brand (company) has the complete visibility of the order placed, order supplied, payment collected, inventory and stock, pending orders, and many more. So, there is no scope left with the distributor to give incorrect data regarding unsold inventory and secondary sales.
Now, why is it necessary and important for a brand to know what is happening at the distributor’s level?
The brand wants to know what is happening with its products. These are the things that will concern the brand and that is why a brand likes to have full visibility of secondary sales at the distributor level.
Eight ways to boost and enlarge your product distribution management system
# Product demand
Whether the stock supplied to the distributor has been sold out? In which particular area has the product been mostly sold? Which product attracts and engages a specific section of retailers? Which product is in more demand? This information will provide the company with an idea about the product strategy.
Next coming to the collection. The distributor is liable to pay the company Once it supplies the number of products to the distributor. Sometimes, the distributor might try to give fake information that the products have not been sold, and he might keep the payment pending. For a brand, this loss. Therefore secondary sales visibility is very important and necessary. Once the company gets the information that the distributor has already sold the product, it has no reason to keep holding the payments further.
#Independent login for each distributor
SalesBabu DMS application provides separate login for each distributor. The users at the distributor end can log in to the application, check the pending orders and supply them via the application itself.
# Invoice, dispatch and stock
Whenever a company generates an invoice and supplies stock to the distributors, the same is also seen by them and a GRN (goods receipt note) is generated as soon as the goods are received by the distributors. The goods received gets automatically added to the inventory of the distributor and when the distributor supplies the orders his inventory gets reduced.
# To boost sales ensure sufficient inventory with distributor
Many distributors have a habit of not maintaining sufficient stock inventory levels as it leads to investment in product stock inventory. Normally a distributor place orders with the company only when they get orders from the retailers and consumers.
Due to poor stock in place, there is always delay and loss in sales at the secondary and tertiary levels. By implementing SalesBabu’s cloud-based DMS software, the companies can have real-time access to the inventory of each distributor and push more supplies as and when the stock levels fall below the expected levels.
# Outstanding v/s Unsold Stock
Here, the major concern is that the outstanding credit for each distributor should not exceed the inventory of unsold items lying with him. SalesBabu DMS software maintains and shows outstanding v/s unsold inventory status for each distributor on a real-time basis.
# Integration of Tally for each distributor
For accounting purposes, most of the distributors are using Tally software. Each distributor can integrate their Tally data with SalesBabu DMS software. Our DMS application imports and integrates authentic data of inventory, sales and outstanding at the level of each distributor and therefore, there is no scope of manipulation available to the distributor.
# SalesBabu DMS integration with ERP
We can also provide integration of our DMS application with your ERP to capture critical data such as inventory sales and outstanding so that the two systems are in sync with each other. We have a team of experts who will execute and deliver the entire thing to the client.
Why SalesBabu DMS for Product Distribution Management System?
Manage data of dealers, retailers and distributors– Have a reliable database and access on the go and never miss out on any account information
Easy, fast, reliable order booking– Orders can be booked by distributors, executive, or manager that goes to the same place
With a single click track order status– As soon as the order gets confirmed, dispatched and delivered, everyone can see its status
Orders, invoicing, stock and outstanding– With cloud-based software manage all your sales-related operations centrally
Connect a real-time with thousands of dealers, distributors, warehouses and agents– Global distribution chain on a seamless wonderful software that they love to use
Find the best distributors, dealers and agents– Based on the sales volume growth and order response time rate and reward them
Get automated alerts to get your attention– Whenever a cause of concern requires escalation, the System alerts you