12 Benefits of Using an Efficient Distributor Management System

Distribution management appears a simple term that means managing your distributors by supplying products, collecting payments, and handling returns. But there is a lot more than these basic activities given the operational complexities and technological developments in modern times. On that note, it has become crucial for organizations to have an efficient distributor management system (DMS) to leverage their supply chain resources.

In this article, we have discussed some of the core benefits of an efficient system for distributor management.

1. Optimum utilization of resources

The best thing about a powerful distribution management system is that it leads to optimum utilization of resources. It’s an undeniable fact that efficient order management, delivery, and returns process, and payment collection system backed by powerful reporting feature plays a significant role in achieving sales targets and desirable growth.

In addition to this, an efficient distributor management system enables quick and smooth operations that ultimately saves time. For example, distributors can set automatic ordering when a stock reaches its threshold, and the manufacturers can deliver new orders quickly since all communication takes place digitally and instantly. It removes many manual and time-consuming processes and improves accuracy.

2. Accurate inventory management

Regardless of the size of your organization, inventory management can be a headache without having a proper system in place. But thanks to modern distributor management systems that include this essential feature as part of the package.

When this system is integrated with your supply chain, there will be no out-of-stock or access inventory. Even if your business has a large number of products, distributors, and retailers covering a large market, there will be quite a low number of errors.

3. Accurate order management

Needless to say that a smart distribution management system integrates many automated processes and communication. This reduces human intervention and errors. Thus, organizations with large networks managing hundreds of orders daily gain the benefit of accurate order management.

Moreover, this advantage offers benefits to all involved parties, i.e. manufactures, dealers, and retailers. They don’t have to worry about issues like late or early orders placement, late delivery, and lost sales.

4. Well-aligned promotions and pricing

This is still a big challenge for many organizations. But there are distribution management systems like EvoDMS that have this crucial feature craftily integrated. If you want to align promotions and pricing well with your supply network, you have got to implement efficient software like this.

Furthermore, an advanced distributor management system allows manufacturers to collect performance data of product lines, distributors, and markets at regular intervals. Companies can create custom promotions, pricing, and offers based on these reports. Apart from this, they can set realistic and achievable targets to motivate and encourage better results from dealers and sales teams.

5. Quick contract documentation and approval

When the entire process is online and data is stored in a database, the contracting and approval process becomes quick and easy. It saves time for both manufacturers and retailers so that they can give more attention to sales and promotional activities. Also, there will be much lesser paperwork since most of the documentation can be done in digital format.

6. Hassle-free delivery and returns management

Product delivery is the most important step in the supply chain process. Therefore, continuous coordination between the sales department, warehouse, distributors, and retailers is inevitable. A distributor management system is designed to meet these requirements and contains sophisticated features that fosters scheduled executions of delivery and return requests.

Ultimately, you face minimum stock issues and have increased customer satisfaction as well as loyalty.

7. A common communication platform for all parties

When a business implements a smart system for product distribution, they gain a major benefit in terms of streamlined communication. Right from ordering and delivery returns management, and payments to promotions, pricing, and reporting, everything is covered. That means, all the parties involved in the sales and supply process will communicate flawlessly on a common platform.

8. Well-organized payment collection

When you have everything managed well with a business suit, its overall effect will be evident in terms of revenue and profit. So, this is one of the main benefits of an efficient distributor management system as part of a complete business software solution.

A DMS makes invoice generation, payment collection, due alerts, and reminders easy and organized. So the business doesn’t have to worry about it and can focus on other important activities.

9. Easy management of distributor claims

Businesses have to deal with numerous claims including the claims for defective products, returns from customers, rewards, etc. What if these requirements are fulfilled by a complete distribution management system? A business using an all-inclusive DMS gets benefits of easy claims management and strengthened relationships with distributors.

10. Better target and achievements

The biggest challenge for sales departments and distributors is to increase revenue in every quarter. But an organization can aid their efforts with an efficient distribution and supply chain management system. This is because they get a clear picture of the sales team’s performance and can set realistic yet challenging targets.

11. Effective reporting

Like any business software solution, an efficient distributor management system comes with a user-friendly dashboard. This helps users, i.e. sales department, distributors, warehouse, and payment collection department to view and download essential reports easily. They can view daily, weekly, and monthly reports and charts and use them for forecasting, goal setting, and improving sales and operations.

12. Fostering long-term relations and win-win situation

Looking at the benefits discussed above, we can say that an advanced distribution management solution is useful in creating a win-win situation for all the parties involved in the supply chain. Furthermore, it not only helps achieve mutual growth but also helps develop a long-term relationship between them.

Wrap up

An efficient distributor management system is important for businesses producing fast-moving goods regardless of their size. Also, the benefits outweigh the cost of a DMS and its implementation.

If you are looking for a complete software solution like this, look no further. We, Evozard, have created an evolutionary solution named EvoDMS that offers numerous benefits including those discussed above. It’s a part of EvoBiz, an Evolutionary Business Suit.

We are a team of experts with 10 years of experience in this field and providing extremely reliable and expert-level ERP consulting, implementation, and customization services at highly competitive prices.

Give us a call or send us an email. We will get in touch with you soon!