In the era of digitization, every business needs to stay updated with the current market trends. For this, it is necessary that the core of your business functions properly, and delivers the right things to the customer, at the right time.
In every retail/wholesale business, each product has a life cycle, from its manufacturing to final delivery. Thus, the product goes through various stages and the business follows a certain procedure to make the product reach its final destination. You can say that you have made a profit only when your product has completed the entire process, and delivered the product to the consumer through the supply chain.
Distribution management plays an important role in taking the product to its rightful place. Let us learn about DMS software and why it is essential for business operations.
What Is Distribution Management?
Understanding Distribution Management is essential to run a successful business. It helps businesses to manage the entire supply chain and fulfill the demand of the consumers. It helps in tracking the sales from manufacturing/purchasing of stocks. Maintains up-to-end storage of products, meets any shortfalls. It also helps in streamlining the entire billing process. Thus, distribution management plays an important role in any business planning.
Facts on Distribution Management
- Adopting a distribution management strategy is critical to a company’s financial success and corporate longevity.
- Distribution management helps to keep the business and its related matters in order and keep the customers satisfied.
- Distribution management manages the supply chain for an organization, including packaging, inventory, warehousing, and logistics.
- As per the latest market study on “Advanced Distribution Management System Market Forecast 2027 – COVID-19 Impact and Global Analysis – Type, Grid Type and Vertical”, the market value in 2019 was US$ 952.0 Million and is estimated to reach US$ 952.0 Million. US$ 3,035.0 million by 2027; It is expected to grow at a CAGR of 19.9% from 2020 to 2027.
Why You Need a Distribution Management System Software
Whether you are a retailer or a wholesaler, distribution management provides a platform to encourage and manage your entire stock-flow and processes across your distributor network. It gives real-time updates on stocks and deliveries. The lack of information management has the effect of delaying your entire sales pipeline.
To understand the importance of using the best distribution software, we need to know the important challenges a business faces while doing sales management. Once you know about these challenges, you will get to know the usage of the management system and you will adopt distribution management system software easily.
- First challenges come with insufficient capital and inefficient technical infrastructure. Most distributors are small, unorganized entities that lack a system.
- Then challenges include managing the data of multi-brand distributors, which are more prone to error due to incorrect systems.
- Lack of qualified data and information to do the right business is also a challenge for the business.
- It is also important to adopt a cost-effective approach and remove inefficiencies to grow with customers’ demand.
- Lack of real-time data on orders, inventory, claims, and returns lead to stockouts or overstocking.
Important Features of Distribution Management System Software
Generally, distribution software can contain a wide variety of features. These features help businesses in optimizing the processes involved in the distribution system. Here are some common features that help in managing the entire product distribution.
Sales Order Management
Sales order management can help your business with entering, processing, and fulfilling sales orders. This can eliminate manual data entry, freeing up time for employees to work on other essential tasks that need to be done.
Warehouse Management
Warehouse management tools can help with choosing, packing, shipping, tracking and delivery. This is a beneficial software feature as it provides visualization of what is happening in your warehouse and how orders are being fulfilled and processed.
Customer Relationship Management
Customer relationship management is crucial for running a successful organization. It keeps every information at the tip of your fingers. This way, you can better make the purchase, plan for high sales and high customer retention.
Production Management
This tool can assist with capacity planning and production planning. This makes business workflows faster and less prone to human error. By increasing productivity, you can increase revenue and create more products.
Procurement Management
Choosing and managing suppliers for your business is no easy task. Procurement management tools can help you measure supplier performance, schedule purchases, and create purchase orders.
How can a distributor management system benefit your organization?
Distribution management is an integral part of the business cycle for distributors and vendors. It gives a boost to your business thereby saving you time and money. That’s why robust distribution software is important to be a fundamental part of supply chain and inventory management. It helps you stay competitive with other companies and keep customers happy.
Benefits of Using an Efficient Distributor Management System
Excellent resources utilization
A powerful distribution management system makes excellent use of available resources and achieves sales targets and desirable growth. If your business is integrated with such a software solution, it will offer you quick and smooth operations that ultimately save time. It removes manual working and gives an error-free business environment.
Accurate inventory management
Inventory management is the key factor for accurate product distribution. Through the distribution system software feature, you can find out about your stocks in real-time and know when they are going to expire. With this, you will be able to distribute the product without any obstruction to the customers.
Advanced order management
A distribution management system integrates several automated processes. It optimizes the processes involved in the ordering system and provides smooth ordering and delivery of products. Thus, it minimizes human intervention and errors and you get the benefit of managing/taking hundreds of your orders and their deliveries.
Well-aligned promotions and pricing
Deciding on the right promotions, offers, and pricing and reaching out to the customers is a daunting task. Any kind of error or loss in business will result in this or you may lose your valued customer. Proper distribution management gives you reporting features. With this, you can know how you can better reach promotions, offers, and pricing to the customers.
Product delivery Management
Product delivery is the most important step in the supply chain process. Therefore, there is a need for constant coordination between the sales department, warehouse, distributors, and retailers. All distribution management software is designed to meet these requirements and ensure product delivery and return management.
Well-organized payment system
Billing and payment is also an important step in successful product delivery. Having distribution software enabled with advanced billing options makes selling/buying everything easy for everyone, vendors, retailers, and customers. You can consider RetailGraph for efficient distribution accounting software.
How RetailGraph distribution management system works for business?
RetailGraph comes with efficient distribution software solutions. The system involves delivering the product from the manufacturer to the end customer. It has processes for all business segments that ensure successful product delivery. It also includes a management system for the supply chain, blockchain, logistics, and purchase orders.
In addition, RetailGraph has an Invoicing System, Vendor Relationship Management, Customer Relationship Management (CRM), Warehouse Management System (WMS), and Inventory Management System (IMS) that guarantees successful business ventures.
This way, you can consider RetailGraph as the best distribution software for small businesses as well as for medium or large businesses in India. It is not only equipped with smart business solutions but also gives you the facility to customize it as per your business needs.
