Rationalize and manage your business effectively with DMS, distribution management system

by Harsh Sultaniya consultant

In the competitive world of the manufacture and distribution of finished products, it is imperative that companies must have a solid management system for managing their activities. But most of the time, it seems that manufacturers and their distributors have difficult moments of coordination and work on the same reasons. They are often found to disconnect.

 

Manufacturers on the one hand possess their interests to stay motivated. These factors are:

- Higher production volumes: Manufacturers still want their products to grow. One of the main reasons for the same thing is that they need high production levels to earn profits.

- Win from the market share.

- Manufacturers want distributors to be more sales-oriented and marketing: higher sales and better marketing mean higher sales and benefits.

- High distributor inventory: manufacturers like their distributors must be loaded and loyal.

- No competition with their product lines.

- Support of distributors with new product lines and

- Payments over time.

 

On the other hand, distributors remain motivated when they:

- Have higher profit margins.

- returns to their capital investments.

- Faster inventory turns.

- Exclusive and protected territories.

- Return of the inventory on goods that do not sell or sell well.

- New lines of regular products that have higher profit margins.

- Requests for products and quality products.

- Regular and uninterrupted supply of products.

 

How can this gap be managed effectively and things are on the same page for manufacturing and distributors?

The answer is the distribution management system. Distribution-based growth is considered the traditional way of growing and improving your brand quickly and reach the ends of the market. In business, there is an old man - "It's easy to create, but difficulty to support". The biggest challenge facing each manufacturer is to ensure adequate stocks with distributors and setting statements that create tensions between the brand and distributors.

 

What is the distribution management system?

The markets are now enormous and complex. They have thousands of distributors, inunden evidence and millions of customers to answer. All these must be managed effectively by the manufacturers. The vast network of large and tiny distributors has its own set of contradictory needs. Manufacturers only can handle all of this with limited insight and data, and take control and management of promotions to the inventory and cost control is through the distribution management system.

 

The DMS system or the distribution management system helps you take control from your supply chain in effect to the control of promotions, improved productivity, inventory management, sales process and claims of distribution. You get accurate and reliable data for all your main and secondary sales. In simple words, DMS is a motor that leads to total sales and distribution activities.

The distribution management system helps your business with:

- Trends and sales analyzes

- Order management

- Inventory management or stocks

- price control and circulation

- stock movement

- Stock situations

- Best purchase and planning, and

- Implementation and regularization of system management

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Created on Jun 28th 2021 02:25. Viewed 338 times.

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