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10 reasons why you need a Distributor Management System

June 20, 2022


Due to various operational distribution complexities in an extensive supply chain market, it is a huge task to monitor and manage thousands of distributors and retailers. Handling all these operational intricacies manually requires humongous efforts. Even though the distribution workflow seems to be an easy one, it needs some effective planning for a seamless flow of supply chain operations. Therefore, an all-inclusive and comprehensive distribution management system is the need of the hour for the organizations involved in the distribution supply chain.

What is a Distributor Management System (DMS)?

Distributor Management System (DMS) helps enterprises manage the supply chain and distribution network efficiently – from streamlining inventory to providing complete visibility of secondary sales data.

Here are some reasons why you need a Distributor Management System for your business:

  1. Optimum utilization of resources: The most significant advantage of an efficient distributor management system is that it optimizes the use of the existing resources. In addition, DMS, a time-efficient solution, also enables a swift and seamless flow of operations. Therefore, it is fair to acknowledge that efficient order management, delivery, return process, and payment collection system assisted by powerful reporting feature plays a significant role in achieving the targets and planned growth.
  2. Accurate inventory management:  With a DMS and access to real-time data, enterprises can bod goodbye to ‘out-of-stock’ scenarios and inventory challenges.
  3. Effective order management: Helps streamline and simplify order management on the buy-side and the sell-side, providing real-time ordering information across the supply chain. Well-aligned
  4. Promotions and pricing: With real-time information at hand, enterprises can better manage promotions and set up custom promotions and pricing. Besides this, they can set attainable targets to encourage better results from dealers and sales teams.
  5. Provides real-time visibility of secondary sales data: A robust DMS helps enterprises obtain data of all distribution channels in real-time that can be converted into actionable insights to handle stock-out scenarios, better plan promotions, and drive sales growth.
  6. Seamless delivery and returns management: Delivery is the most crucial stage of the supply chain process because there must be constant communication between the distributors, warehouse, retailers, and the sales team. Hence, an efficient Distribution Management System is required.
  7. Common communication platform for all parties involved: For streamlined communication, all the parties involved in the sales and the supply teams can coordinate without hiccups on a common platform.
  8. Well-ordered payment collection: Undeniably, a streamlined dealer Distributor Management System will certainly benefit a business that will lead to profitable revenue generation. A Distributor Management System creates due alerts, invoice generation, payment collection, and simple and coordinated reminders.
  9. Effortless management of distributor claims: By implementing an all-inclusive Distribution Management System, organizations can manage claims easily and enhance the connection with distributors.
  10. Improved targets & effective reporting: By executing an efficient distribution and supply chain management system, an organization can clearly understand the sales team’s performance and set realistic yet challenging targets to increase revenues.

Hence, a Distributor Management System (DMS) plays a key role in managing the supply chain, providing real-time access to data, and enabling enterprises to stay ahead of the competition.

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