A Distribution management system (DMS) plays a crucial role in ensuring efficient distribution management, yet brands face challenges in tracking secondary sales beyond initial transactions. Without a robust DMS, poor reporting systems, limited data access, and a lack of real-time retailer insights make sales tracking complex. Additionally, market reach limitations and distributor cooperation further impact inventory visibility, making it essential for brands to implement a DMS for better control and transparency.
On the other hand, as a consumer goods manufacturer, it is crucial to maintain a steady supply to distributors. This ensures that retailer demand is met. Now, imagine a retailer facing a shortage of your product. They contact the distributor to restock. However, the distributor has insufficient inventory. This delay in restocking could result in empty shelves at the retailer’s store. Thus, it can lead to a potential loss of consumers and revenue.
An online distribution management system functions to provide brands with accurate visibility of secondary sales. It plays a crucial role in tracking the sales data. For clearer explanation- Online DMS allows brands to manage and monitor their sales data at the retailer level (secondary sales). It provides real-time insights into sales trends, stock levels, and customer behaviour across their supply chain network.
According to the reports of the International Trade Administration- India’s retail sector was valued at $883 billion in the year 2020. It shows the great need for having a robust distribution management system. Moreover, India has 12 million retail outlets. Most of these outlets are unorganized family-owned entities. Due to this unorganized setup, it becomes challenging for brands to ensure visibility and demand fulfilment.
A Dealer distributor management system software also addresses inventory management challenges. It helps your business maintain control over stock levels. It is also known as Distributor inventory management software or delivery management system. The dealer distributor management system lets you track and forecast stock levels. This ensures you always have enough supplies available.
The International Trade Administration further says – India’s FMCG market is expected to run at a rate of 10 to 12% annually over the next decade. Thus, Brands must ensure efficient supply chain management and maintain optimal stock levels to meet the rapidly expanding customer demand.
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What is a Distribution Management System?
Now, let’s understand what exactly a Distributor management India entails. It is an ERP-like software that helps companies manage product movement. It tracks products across multiple distribution channels. It is a sales automation tool that companies provide to their distributors.
Distributors use this software for daily tasks. These tasks include secondary billing, credit and debit notes, inventory management, and returns. This advanced distribution management software streamlines key business processes. It includes logistics, purchase, and sales order management, supply management, and van sales. These features help execute distribution operations smoothly.
Automated Distributor management system: A Competitive Edge for FMCG Businesses
To understand what is distribution management system in simple words, we need to understand today’s business landscape first. Specifically, the needs of the FMCG and retail markets. An ideal distribution management system FMCG, should be responsible for managing distribution channels, optimizing supply chains, and reducing the risk of stock-outs. By implementing automated distributor management software aka order fulfillment management software, businesses can streamline their distribution process. It covers storage and delivery. It ensures the timely order fulfilment system process.
The benefits of cloud-based DMS for distributors can give businesses a significant competitive advantage to improve efficiency and reliability. This allows businesses to stay ahead of the competition.
Let’s now look at the challenges faced by distributors and brands. These challenges arise as they navigate the complex product distribution landscape.
How CPG & FMCG Brands Overcome Business Challenges in Distribution Management
1) Optimizing Fill Rates for Better Inventory Management
Understanding consumer demand is key. Stock availability is also important for supplying products through distributors to retailers. Without up-to-date data, managing the supply-demand balance becomes difficult. For instance, if a brand sends 100 items to a distributor and half remains unsold, adjustments are needed for the next month or quarter. Access to actionable data helps brands optimize distributor inventory management challenges and reduce unsold products.
2) Enhancing Secondary Sales Visibility for Data-Driven Decisions
For the brands, the major challenge is to gain visibility into secondary sales. A secondary sale is a sale between the distributor and retailer. It is impossible to track tertiary or consumer sales. Thus, the secondary sale is the closest market demand value a brand can track. Without secondary sales, a brand relies solely on primary sales. This creates a “push” style distribution. Here, consumer demand and product movement across geographies cannot be tracked or evaluated.
3) Dynamic Trade Scheme Management for Retailers
The trade scheme efficacy presents yet another obstacle for brands. These schemes incentivize retailers. It offers free items or discounts on specific products. However, their success can vary. Without visibility into their performance, brands may find it hard to refine strategies. By gaining insights into distributors’ billing, brands can ensure accurate billing. This applies to the schemes that are used. This transparency helps brands evaluate their trade schemes.
4) Automated Claims Processing in DMS: Faster Settlements
Handling claims from distributors and retailers is difficult and time-consuming. It often requires additional support. A standard yet flexible system for processing claims increases speed and transparency. An automated distributor management system ensures efficient handling of claims.
Key Problems in Distribution Management System
1) Overcoming Complex User Interfaces in Distribution Management System
Accessibility is a crucial consideration for successful distributor management software adoption. User-friendly design is paramount. It enables novice users to navigate the system in a better way. Complex user interfaces, slow loading times, and difficult navigation can lower the effectiveness of advanced distribution management system software.
Rural distributors, who rely on mobile devices for distribution for rural growth, may struggle with desktop solutions in the absence of Rural Distribution Software. To solve this, Rural DMS AKA Rural distribution management solutions help them work on different devices and in various user environments. Alongside it helps Rural distributors to focus on rural ales channel expansion meanwhile operating on rural market penetration strategies.
2) Encouraging Distribution Management Software Adoption
Distributors may resist adopting distribution channel management software. They may have doubts about its value, concerns about data sharing, and transparency issues. They may see the system as brand-centric, benefiting brands more. Some distributors also prefer to keep the status quo for their advantage. For example, distributors may exploit loopholes in trade schemes to maximize their rewards.
3) Addressing Implementation Challenges for Seamless Integration
Implementation issues pose another significant challenge for both brands and distributors. Brands may invest in advanced distribution management system with all necessary features. However, distributors may already use legacy systems or accounting software they trust. Compatibility issues may arise if the new system cannot integrate with existing ones.
4) Ensuring Scalability and Growth with a Flexible DMS
Achieving scalability is a major concern. Thus, the development of business and technology trends change over time. A rigid DMS architecture can limit the addition of new features or business areas. This may need costly redevelopment efforts.
Now, let’s focus on some of the key benefits of a Distribution Management Software:
Top features of a Distribution Management System for FMCG
1) Enhanced distributor Inventory Management
Enhanced distributor inventory management software for distribution allows businesses to track sales and stock levels in real-time. It helps them assess product demand and adjust inventory levels. If an item sells quickly, they can reorder to avoid stockouts and meet demand. If products sell slowly, they can reduce stock to free up capital and space.
Features like AI for distribution analytics and predictive analytics for distribution help businesses to analyze sales trends to forecast future demand and plan inventory purchases. The AI for Distribution Insights based proactive approach reduces the risk of overstocking or understocking. AI-driven sales forecasting and better distributor inventory software streamlines operations. It cuts costs and improves customer satisfaction. This is achieved by ensuring product availability.
2) Improved Secondary Sales Visibility
Improved secondary sales visibility helps businesses track sales made by distributors, stockists, or partners. This applies to all levels of the supply chain. By monitoring these sales, companies can understand customer preferences and buying patterns. This helps them adjust their sales strategies.
Let’s understand it properly with distribution management system examples. – If a product sells well in certain regions or with specific partners, the company can allocate more resources there. Here distribution management system benefits businesses by making smarter choices about inventory, marketing, and product development. As a result, sales and customer satisfaction have increased.
3) Stock replenishment
FMCG companies must manage stock levels at distributors, retailers, and stockists. Heera’s best DMS software for FMCG in India provides accurate distribution data analytics into stock levels, expiry dates, batch numbers, and returns. It also sends alerts in advance. This allows for early planning of replenishment compared to traditional methods.
4) Order Management
A distributor management system software enables distributors to convert orders from retailers. These orders come from different sources. They include Sales force automation software (SFA), retailer apps, phone orders, manual orders, and counter sales. The Retail Distribution Management System converts these orders into invoices. It also applies schemes according to company pricing norms.
Multiple orders can merge into one invoice, or one order can split into many. The top rated inventory management software for distribution allows distributors to place primary orders with the company. It also allows them to create the Goods Receipt Note (GRN) once the company completes the primary sale invoicing.
5) Enhanced payment collection
The distribution management system software simplifies creating many invoices quickly and digitally. It also shows any outstanding and receivables, so distributors can keep track account-wise. Plus, some automatic reminders can be set up to help with payment collection.
6) Promotions and pricing
Setting the right prices and promotions can be challenging for many companies. The product distribution management system software helps automate this process. To align your promotions and prices with your distribution management in supply chain management, you need effective software like DMS. It integrates with your master data and helps create scheme definitions.
An advanced distributor order management platform provides regular distributor & consumer management system report. These reports cover product lines, channel partner performance, scheme utilization, and marketplace trends. Using these reports, businesses can manage trade marketing, prices, and schemes. They should also set realistic goals to motivate distributors and sales teams.
7) Returns management
Making sure products reach their destination is crucial in distribution planning in supply chain management. This involves constant communication between sales teams, warehouses and distributors management, retailers. Distributor management system software helps with this by coordinating deliveries and returns efficiently. It has advanced features to schedule deliveries and handle return requests smoothly.
8) Easy management of distributor claims
Distributors can raise claims from the Distributor Management itself. Distribution management s system software can generate claims. These claims can be reviewed by the distributor and raised against the company. The company can further process these claims.
This entire process happens digitally in a seamless and integrated manner. This process also ensures transparency of claims between both parties. A faster and more accurate claim settlement process builds a stronger relationship. This benefits both the company and its channel partners.
9) Better ROI (Returns on Investment)
When a Distributor management system software is implemented, it can bring various cost-saving benefits. It helps brands optimize management inventory system levels at distributor points. This avoids excessive storage costs and reduces carrying expenses. Optimized distributor inventory investment improves ROI.
Well-implemented Sales and Distribution Management Software benefits businesses in many ways. It improves efficiency, reduces costs, enhances customer satisfaction, and boosts sales.
Future of Distribution Management: Trends & Predictions
Distribution business management software trends are constantly changing. These changes are influenced by end-user behavior and other stakeholders. It’s crucial to track current and future trends to expect changes in the industry.
Let’s explore some of these trends:
Trends in Distribution and Supply-chain Management
1) Data-Driven Approach
Growth and improvement in distribution management depend on acquiring and utilizing accurate data. An organization relying on data-driven distribution strategies can detect vulnerabilities early. This helps improve processes and build a strong foundation for the future. Tools that provide insights from transactional data in distribution channel management software are becoming more common. They help with better decision-making and risk management.
2) Scalability and Flexibility
A DMS is relevant across brands and industry sectors. Yet, every industry has its own unique set of business practices and protocols. Configurable and customizable distribution management system software is more likely to succeed. It can be tailored to fit a company’s business practices. The software must also be scalable. This allows companies to grow their user base without affecting performance.
3) Modular Design
Modular software designs provide flexibility. They allow companies to choose and select functional modules based on their needs. This simplicity combined with precision provides users with greater control and efficiency.
4) Why Cloud-Based SaaS DMS is the Future
Many companies choose Software as a Service (SaaS) solution. These solutions are scalable, easy to maintain, and regularly updated. Timely updates keep the platform relevant and responsive to market needs. This helps prevent concerns about obsolescence and ensures business continuity.
Conclusion: Why Your Business Needs a DMS
In an FMCG/CPG company, each product goes through several stages. These stages occur before the product reaches the consumer. Once the product is ready, it begins its final journey to the customer. This journey involves wholesalers and retailers. The distribution resource planning software manages this process. It automates steps as the product moves from the company to the distributor. Then, it automates the process from the distributor to the retailer.
Distribution management system software is key to a CPG brands distribution strategy. The distribution management system software supports key business goals. These include product availability, inventory management, scheme management, secondary sales tracking, and fill-rate monitoring. It acts as a catalyst for growth.
It gives sales teams, from field reps to the National Sales Manager, visibility and control.
Experience the Power of a Distribution Management System (DMS)
Frequently Asked Questions
Yes, Heera DMS software solution is designed to cater to small, midscale and enterprise FMCG businesses. It offers scalable features that adapt to your business needs. It ensures you get flawless distribution management at any scale.
Heera DMS is the best DMS software for FMCG companies offering real-time inventory tracking system, order management, and secondary sales visibility. It streamlines operations, optimizes supply chains, and enhances decision-making.
Adopting a DMS helps FMCG businesses to streamline operations, manage inventory management software more effectively, track secondary sales, and optimize distribution processes. It increases your business’s efficiency, reduces costs and improves customer satisfaction.
Online distribution management system software provides a key centralized platform to manage the best inventory control software system, track daily sales process and automate the order processing in real-time.
A Distribution Management System Diagram or flowchart represents major components such as retailer management system, warehouse distribution software system, supplier management and customers interacting through a supply-chain management system operated by a distribution management system.
The wholesale ERP software helps brands to automate procurement, order management, inventory and financial processes. It ultimately helps achieve scalability and efficiency for wholesale distributors.
The best CRM for distribution companies helps to track sales integration alongside managing customer relationships and analyzing the purchase. It strengthens distributors to make quick and better decisions.
The best distribution management systems (DMS) offer advanced automation, real-time tracking, seamless integration, and AI-powered solutions. These systems help businesses streamline supply chain operations, optimize inventory, improve order fulfillment, and enhance inventory visibility.
Choosing the right DMS depends on factors like scalability, ease of use, and industry-specific features. Heera DMS provides a comprehensive solution with cutting-edge technology to drive efficiency and growth in distribution management.
Heera Software offers the best Distribution management Salesforce automation services. We help you with advanced distribution management system project for effective distribution and sales management.
The major types of distribution networks in supply chain management involve direct distribution, indirect distribution, hybrid models, etc.
It refers to optimizing goods flow and supply chain management system architecture meanwhile ensuring balanced stock levels across multiple distribution centers and reducing delays in the supply chain. and a distribution management system (DMS) is a software solution that automates and streamlines the distribution process. It provides real-time visibility into secondary sales, inventory, order fulfillment, pricing, and trade promotions.
The concept of machine learning in distribution helps predict demand, optimize delivery roues and reduce key operational costs by assessing large datasets.
The multi-company billing distribution system helps enable businesses handling multiple subsidiaries to track, generate and consolidate invoices flawlessly across different entities.
Distribution management system software free download versions may offer you limited features with limited access. But, if you’re looking to have a scalable and robust solution, consider choosing Heera Software’s distribution management system DMS with advanced integration and sales force automation services for handling all your day-to-day work.
SAP Distribution Management System helps businesses improve customer service, reduce errors and streamline supply-chain operations. A typical Distribution Management System can integrate with your company’s internal ERP, such as SAP, to pull relevant data like product and distributor masters, primary invoices, etc.
You can find such documents online for reference, but for customized and personalized insights, Heera Software helps you with expert-driven presentations in order to fulfill your business needs.
No, open source DMS often lacks the advanced features, security, and dedicated support required for the complex operations of FMCG businesses.