What Is The Need For A Distributor Management System In An FMCG Organization?

The Distribution Management System (DMS) focuses on the distribution of completed goods and the relevant supply chain activities. Manufacturing, packaging, inventory management, storage, and transportation facilities will all be part of the process as well. This software has become a need for managing the whole supply chain and ensuring that customers' needs are met. As a result, firms can better manage the many aspects of their channel sales, from quicker stock replenishment and lower inventory carrying costs to more precise production forecasts.

Let's take a look at the most important advantages a business can get from using a Distribution Management System. The following are a few noteworthy advantages of DMS:

1. Streamlined access to all corporate information

Having real-time insight into all business data from your distribution networks is critical as an FMCG firm. You can't get real-time or genuine data from your suppliers if you aren't utilizing a Distribution Management System (DMS). Some of the most important information, such as current stock levels with distributors and pending orders, orders that have been returned by retailers, and more, cannot be compromised. Therefore, a DMS is the best way to keep track of your distributors.

2. Know what's going on even in the most distant locations

More and more food and consumer goods (FMCG) corporations are establishing distribution networks in rural areas of India as a result of the country's rising GDP. Because of the sheer number and, at times, the geographic isolation of distributors, it's almost hard to track the flow of your products throughout all of your distributors. With a DMS, even a distributor located in the North-Eastern states or remote sections of Rajasthan would have real-time access to all data needed.

3. Support for your distributors

DMS implementation will almost certainly be met with opposition at the outset, as you've learned from experience. In terms of automating and simplifying many of their day-to-day procedures, this is a very useful tool. A few examples of how a DMS would make the life of a distributor easier include the automation of activities such as the movement of all sorts of items, the specifics of overdue payments, system-generated invoicing, notification, and alerts.

4. Faster claim resolution

Having a Distribution Management Software in place can also assist your distributors in terms of faster and more efficient claim settlements. There will always be complete transparency and accountability to distributors, and also to the firm, thanks to DMS' automatic return and damaged reception processes. As a result, all claims will be handled considerably more quickly using DMS than through a manual approach, which often requires numerous rounds of discussion between the parties involved in the case.

5. Control over marketing and promotional schemes

Promotion and schemes are two of the most important factors in an FMCG company's operation. As a rule, these actions are expensive for businesses. The following issues, however, are often left unanswered: 1. Are the advantages being passed on to the retailers? 2. Do I have a plan that's working? Distribution Management System’s implementation is an easy approach to answer these concerns. DMS will assure all necessary checks and balances at the time of invoicing, and it will also assist you in analyzing the success of each scheme.

6. More efficient replenishing of inventory

All of us know how crucial it is for FMCG firms to maintain optimal stock levels at various points of contact, such as distributors, retail stores, and wholesalers. Distribution Management Software allows you to plan replenishment far sooner than if you didn't have access to accurate information about distributor stock, expiration dates, batch numbers, returns, and so forth.

7. Smart production planning

DMS software should be connected with your ERP system's demand planning function. For your ERP production planning engine to have access to the most up-to-date inventory levels and orders waiting to be filled at your distribution points, integration must be completed before any data can be imported. You'll be able to reduce or eliminate waste in your production resources thanks to this integration.

8. Standardization of the process

After everything is said and done, with a single system in place for all distributors, you will be able to verify that all of your desired procedures related to distribution are standardized. Most importantly, since all parties involved are depending on a single system, there will be only one version of the truth, which will eliminate the need for wasteful back and forth during times of disagreement.

9. Improved stock control

When you have real-time access to information about sales and inventory, it will be much easier to maintain a methodical inventory management process. It also helps you make better business choices by providing you with information about demand and the items available in the market.

10. Transparency in Secondary Sales Execution

In the past, FMCG businesses were required to show up at distributors' offices to gather statistics on secondary sales execution. To meet the expectations of DMS, firms will have comprehensive real-time insight into secondary sales execution.

11. Operational costs may be reduced while efficiency is increased

Distributors may now eliminate the need to invest in workstations and human resources. In addition, it decreases the company's income loss by eliminating the additional expenditures associated with pilferage and damage to goods.

Conclusion

To reach its ultimate destination, each product in the manufacturing firm must pass through a series of phases. A wholesaler and retailer system is used to distribute the finished product to the end-user after it has been completed. As part of the supply chain, the Distribution Management System is responsible for coordinating all of the stages involved in distributing completed goods. Among these phases are the ones associated with production, packing, stockpiling, warehousing, and transportation. There are no mistakes made in the sorts of items that need to be provided, and there are no misunderstandings about when or how much has to be delivered during the whole process. The right communication, transaction monitoring, and pricing are required for each of these procedures.

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