As you might now know, a distributor management system is a whole process which assists in managing the distribution management process, which involves tasks such as storing, picking, receiving, van sales, merchandising, delivering and much more. In this article, we will focus on how the distributor management system would be practically advantageous to your business.

Practical advantages of a distributor management system

1. Optimized order management

First off, the entire system of distribution management cycles around your business because you acquire orders from your customers. If you do not acquire any of them, there wouldn’t be a reason for someone to have a distribution management process; since there are no orders to look out for. Thus, creating an important value for your orders. In order to manage these orders or optimize the order management process, it is vital to have an effective system; distributor management system integrated into your company.

A DMS system will assist the employees to manage the orders precisely, prevent missing out on sales and incurring losses and make stocks available in the required amount(neither stockout nor overstocked), which would ideally result in gaining more potential customers for the company.

2. Real-time updates 

In this case, let’s slightly get into the historical aspect. Until recently, people used to use Excel sheets or a paper-based system to keep the companies updated. And, of course, many things can go wrong here.

Over here, things are updated on the sheets only after the particular work is done, and until that, there will be no updates, and since it is manual, there is a high chance of having flaws in the records. Locations might go wrong; deliveries might not have been updated, the count of stocks might be faulty, and much more.

Somehow, as a tremendous solution for this, the distribution management system set foot in and changed the workflow by providing updates then and there, enabling delivery updates from the beginning of the destination to its end, location updates and so on.

3. Adhering to sales and analytics trends

Moving on with trends is quite vital at present, and focusing on the trends, yet, at the same time, shielding its distinctiveness, is much as important.

So, in order to make things at ease, the DMS system practically involves displaying sales and analytics trends to look through it for further rectification of the business. And definitely, these can be used for future forecasting purposes and adapt to the newest trends with a data-driven technique rather than moving ahead with no clue.

4. Distributor Management System helps improve employee efficiency.

A distributor management system is the ultimate bullet to minimize the workload that needs to be attained to by the sales force of the company. For example, imagine how you would work in an atmosphere where everything is repetitive most of the time; You would be bored, wouldn’t you? Sending e-mails, always having to follow up with them and answering inquiries all through the day might make you exhausted.

Having a DMS would inevitably create a workspace that would not be too repetitive for the employees; rather, they can engage in more sales-driven, revenue-generated business schemes tactically, with high motivation and improved efficacy.

5. Booming customer relationships

One of the most influential factors in regard to business is having an outstanding relationship with the customer base. Without customers, there will be no orders or your business.

In order to have a better customer relationship, the first thing is to have a better mode of communication, and the distributor management system turns out to be of use by assisting with this task as well.

It will provide a platform where you can build up relationships with your customers by helping you to check on customers, follow up with emails, and give what they need without delay and, at the same time, will assist you with ageing more potential customers to the business.

6. Optimization of inventory management 

Inventory is not just about the end products; it can also be the raw materials that are used to build up the products. Without a sufficient amount of raw materials reaching the level of “best finishing” would not be an easy task, and on the part of end-products, the more they become unable to supply, the more losses a business will have to incur.

Therefore, inventory management is of utmost importance, but it should be well-optimized and an efficient process. Thus, the distributor management system will play a vital role by aiding in managing the inventory levels appropriately by avoiding stockouts or excessive stocks. This will also help in saving time and cost as well.

7. Authenticity and security of data

Again, moving on to a slight bit of history, a paper-based distribution management process might have a high risk of data getting lost or stolen. As a solution to this, the distributor management system would act as a shield for the business data by using various modernized techniques, such as passwords, encryptions, and two-way verifications, so in this way, only the people who are related to the sector of your business can access to it, minimizing the probability of increasing frauds or leak of data. Additionally, the DMS will ensure to back up the data by scheduling according to your convenience.

8. Adherence to regulatory compliances

Adhering to rules and regulations can be quite a hard task at times when done manually, as you will have to check each and every regulatory compliance from time to time; on the other hand, you will have to be updated through different sources and it might make things quite complicated at times.

Having a distributor management system will ensure to keep you updated with the compliances and the regulatory standards from time to time without you having to put in much effort from time to time. The DMS would help you to manage the licensing, certifications, permits and other required legal documentation systematically and methodically.

9. Better financial control 

The ultimate goal of the business is to gain profits through the service the business provides. In this point of view, financial control and budget planning take a hoist when uplifting the business. In order to manage the financial process effectively, a distributor management system would be an outstanding solution.

This will help to reduce costs of manpower and other unnecessary costs that can be due to excessive stocks, stocks getting expired and most of the time; it will prevent every other way the business will have to bare for the losses. It will most probably maintain the financial status at the same rate or help you gain profits.

Final touch up

Finally, the practical implications of an efficient distributor management system will ensure to elevate your business to the next new level complying with the modernized trends. It will help to increase the customer base, increase your Return On Investment(ROI) and streamline the most important operations of the distribution management sector. Boost your business revenue by upgrading your DMS with us, Simplr! Don’t stop just by being a brand, be a legend in the industry of business!