Every product from its manufacturing stage to its final destination goes through a lifecycle. The product passes through various stages. Once the product is ready, it reaches the customers through a system of wholesalers and retailers.
The distribution Management system deals with that stage in the supply chain, which is concerned with the distribution of the manufactured goods. This includes packaging of finished goods, inventory, storage, warehouses, and transport facility for the manufactured products.
The entire process ensures that there are no errors with the type of product which needs to be delivered and also that there is no ambiguity regarding the time and quantity to be delivered. All these activities require excellent communication, proper monitoring of transactions made and the prices.
Listed below are some reasons why DMS is important for the Distribution Management
#Keep distribution systematic and organized
Every store would receive goods directly from every manufacturer if there was no such concept distribution management system. There would be complete disorder and chaos since goods carriers with large shipments would reach the retail outlet and the store would lack the space to accommodate all the stuff.
With a proper system in place, the wholesaler or the retailer stocks the goods in the warehouse and the store takes the required amounts of different brands.
Read More – 8 Ways To Improve Distributor Sales Performance
#Easy for customers
A cloud-based Distribution Management System (DMA) ensures that shopping becomes convenient and easy for consumers. If every business were to have its own store then consumers would have to visit different stores to choose products wasting a lot of energy and time.
A convenient system of distributing goods by different brand manufacturers and goods manufacturers ascertains that all varieties of items are available in one store and the customer gets the advantage of choosing from products of many different brands.
#Bulk Breaking
The customer does not have to bother himself about the huge quantity of products manufactured. It’s the job of either the wholesaler or the retailer to store these items to make them available in small numbers or quantities for the customer by bulk breaking.
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#Reseller Initiatives
The distribution management system makes sure that resellers do what manufacturers cannot do for the goods. They often advise the customers to purchase the products encouraging the sale.
They attract and impress customers with various promotional offers. To reduce the burden of huge payments and make payments easier for customers different finance schemes are offered to consumers.
An enticing display is also used by resellers for selling the products in their store thus sales grow. Resellers also provide real-time feedback to the manufacturer regarding their products.
This valuable feedback helps the manufacturer in making improvements to the product. In business this has always been used and, now a fully automated system has made distribution work even easier at all levels.
The Distribution Management System (DMS) takes care of controlling, and monitoring the entire distribution network including ordering, delivering, inventory, payment, and other important activities. Because of the use of this system, companies enjoy many advantages. It is obviously more functional catering to the specific demands of the distribution companies.
A cloud-based feature-rich DMS is needed by all distributors which are compatible with the needs of the industry standard. For instance, industry-related food distributors require the code date on each product to ascertain the shelf life of each product. And for the apparel industry, the DMS would focus on style, size, the colour so an automated system makes all this easygoing.
All customers’ data and information, business partners, stocks and supplies as well as suppliers can be easily stored, accessed, and analyzed. With these pieces of information, better business analysis can be made by developing reports and charts.
The satisfaction of the customer is ensured with an advanced CRM feature that is incorporated into the DMS. The amount of workforce required gets minimized since managing them becomes easy. This saves time and money and therefore the operating costs go down to a great degree.
Their communication is smooth and effortless. The processing time reduces and admin costs are effectively reduced. The return on investment (ROI) increases as productivity goes up and finally sales boost and services become better.
The journey of a product is complete only once it reaches the home of the consumer. Items cannot reach customers without an efficient cloud-based distribution management system.
A high-quality DMS should be cloud-based and compatible with industry standards. For example, in the food industry, distributors need to track product expiration dates. In the apparel industry, a DMS should focus on managing different styles, sizes, and colors.
A DMS offers numerous benefits, including:
- Improved Data Management: Store, access, and analyze customer, partner, and supplier data.
- Enhanced Business Analysis: Generate reports and charts to gain valuable insights.
- Enhanced Customer Satisfaction: Integrate customer relationship management (CRM) features to provide exceptional service.
- Increased Efficiency: Streamline processes, reduce manual tasks, and minimize errors.
- Reduced Costs: Optimize operations, reduce labor costs, and improve profitability.
Conclusion
A robust Distribution Management System helps to streamline all distribution workflows and operations, enhances the efficiency of the supply chain, eliminates stockouts and overstocking, and allows companies to access real-time data from distributors.
With the proper software system fueling your sales and distribution activities, you can achieve high performance in even the most fast-moving and fragmented business world.
And that is where the SalesBabu cloud-based Distributor Management System (DMS) comes in, designed, and developed for the industry where a number of dealers and business partners are involved.
It combines and automates all the business processes in a single platform to streamline the business, and to make complicated tasks like tracking inventory, orders, sales, purchase dealer performance, supply, clients, vendors, etc. simpler.
