Best Practices

How Distributor Management System Improves your ROI

Gaurav Singh Rana

How Distributor Management System Improves your ROI

Distributor Management System (DMS) has become an inevitable need for companies to manage distributors around the world. Immense growth in Return on Investment (ROI) has been experienced by those who have started using the DMS. Hence, there has been a serious gap between traditional distributors and digital distributors which is constantly increasing.

Improvement in ROI By Using DMS

  • 99% faster order fulfilment
  • 35% increase in the order frequency
  • 80% increase in the product availability
  • 90% increase in timely deliveries
  • 30% faster order to cash cycle

Costs Reduced By Using DMS

  • 91% reduced operational costs
  • 99% reduced order errors
  • 40% reduction in rationalisation costs
  • 40% reduced labour arbitrage
  • 18% reduction in future CapEx spend
  • 30% reduction in leveraged freight procurement

Benefits of the Distributor Management System

1. Faster order fulfillment

The order placement is accurate and driven by the data. Order history of a particular buyer helps in choosing the right products again. Also, some related products or the products that might interest the buyer are shown as per the order history while placing orders. Exact status of the inventory is available for the buyer to decide and plan the quantity better. Further, the order is processed automatically instantly within the distribution management software. All this convenience makes the buyer comfortably loyal to you. As human interaction and paper work reduces, overall operational costs also reduce. Lesser human involvement also means lesser errors, this reduces order returns.

2. Better Inventory Management

With the help of order history, the feature of analytics offers you the data for the possibility of upcoming demand. Hence, you can replenish your inventory accordingly. Additionally, real time stock information also helps in replenishing the inventory on time. The inventory is also classified as per data, based on the product flow.

3. Better Trade Schemes Utilisation

Dynamic pricing helps you keep the discounts customised according to the buyer. You may be able to sell more to a retailer with lesser paying capacity, just by offering attractive schemes or discounts. You can also club different schemes to provide the best possible deal to your loyal customers. With the help of analytics, you can track the performance area-wise and offer the pricing or schemes accordingly. Traditionally, distributors have been offering schemes to the retailers randomly. With the help of DMS, the distributor can get the better idea of the sales and paying capacity of the retailer. It is also helpful in improving the relationship with the big retailers. If a retailer makes big orders regularly, schemes can be a good gesture to improve the relationship. There can be many creative ways of using these schemes to increase the profits and future prospects. DMS also helps you assess and analyze better what you can improve to retain your existing customers and bring the new one.

4. Improved Payment Collection

Multiple invoices can be generated at once, as everything is system generated. Outstanding payments are also visible for you to track and take the required action. Additionally, you can set automatic reminders, so that the pending payments can be made by the buyer without the need of any personal communication.

5. ERP Integration

The software is synchronised with accounting software in real-time, so all the calculations are happening simultaneously. Powerful invoice management simplifies the tax filing upto a great extent. There is no scope of forgetting anything, as notifications and alerts keep reminding the required actions.

Wholesale distribution is a complex business, which requires involvement of a lot of people and a lot of processes. Since time immemorial, distributors have been facing losses due to human errors and inefficient sales strategy. Being dependent on a lot of people for each process eventually takes the control out of your hand.

The distributor management system helps you keep the complete control. Also, this software helps in maintaining the transparency at each step to ensure that everything has been happening smoothly while avoiding any possible conflict. Making sure that right distributor management software is deployed is a critical factor for ensuring maximum benefits out of one and staying ahead of the competition.

Last Updated :
June 17, 2022
Published :

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