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What is a Distribution Management System?

What is the Distribution Management System

A distribution management system, abbreviated as DMS, is a set of applications that eases the interaction between the sellers, distributors, and consumers regarding the sale or purchase of several products. The strategies involved in DMS have elevated the level of modern business to higher degrees. The advent of DMS in the business world is beneficial for large business groups and the smaller ones.

What is a DMS?

To understand the concept of DMS in a better and more straightforward manner, you can go through the following example.

Suppose a person named Pavan Sharma has set up a business of making notepads. Initially, he sells his notepads in his locality, having a small-scale business. Later, he decides to expand his business by increasing the sales range, thereby reaching other markets. What will he do now? Of course, he will contact distributors of different localities. These distributors will help Pavan expand his business by taking bulk orders of notebooks and selling them to their network of retailers and sub-distributors.

Meanwhile, Pavan’s workload increases. He has to keep records of every detail like the names and addresses of different distributors he approached, the number of notebooks ordered by each distributor, total profit made in different localities, distributors’ share in the profit, and many more details. All the data collection and calculations complicate the entire procedure of doing business, and selling a single notebook becomes time-consuming and laborious.

Here comes the need for DMS. With it, you can efficiently deliver your products or goods to their final destinations without any hassles. Also, it reduces the bulk of keeping data records, thus, saving time and ensuring a good business strategy.

Bizom’s distribution management system oversees a company’s backstream supply chain from manufacturers to distributors the point of sale, including inventory management, order fulfilment and sales returns, primary order and billing, secondary order booking, schemes and discounts, distributor claims, collections, reports and dashboards. It has allowed the digitalization of consumer goods businesses and provides companies with various capabilities to win in the market.

How Products Flow in a Distribution Management System?

What Are the Capabilities or Features of the Distribution Management System?

As a Distribution management system is an automated platform for managing the circulation of products from the point of production to the point of consumption, the software is designed with several features (listed below) to enhance the seller-buyer relationship.

Inventory Management 

Manufacturers can upload a detailed list of their stocks, whether raw or finished products. It offers a real-time business picture as it can be easily viewed and managed. Stocks are added or reduced based on GRN (Goods Received Note) generated and on completion of secondary orders, respectively. Even distributors can view and audit these inventories.

Order Management 

Distributors can apply for new orders or cancel previous orders based on consumers’ demands and stock availability in the warehouse. Consumers can customize orders according to their needs.

Order Fulfilment and Route Management

DMS can easily track Orders. You can access the products’ real-time location from the initial point of dispatch by the manufacturers to the endpoint via warehouse and distributors. This “Track Your Sales” feature of DMS has enabled users to cope and keep up with the time. When an order is completed, GRN (Goods Received Note) is generated with proper invoicing. This helps to keep a record of the circulation of each product and maintaining the inventory. Distributors can even suggest better routes to a salesperson for quick delivery.

Secondary Order Booking

This feature enables you to book orders and buy from retailers. You can track your orders even if you buy from retailers. Retailers get an option to accept or reject the orders. You can see the reduction in stock after the successful accomplishment of secondary orders.

Scheme Management

This feature allows firms to know about their customers’ preferences and accordingly set the deals and provide them with offers and discounts. 

Sales Return and Management 

Here, you can also return the purchased order if some mishap happens with the goods or dissatisfaction delivery. You can also track the return of sales.

Payments and Transactions 

This is one of the best features of DMS. It offers different ways of paying bills, like through credit or debit cards or using net banking. Thus, it minimizes the hassle of traditional cash handling, the conventional cash flow method in a business. Also, you can view your previous transaction records anytime and manage your capital.

Performance Tracker

This feature permits you to observe different manufacturers, distributors, and retailers’ performances to make wise decisions in business and help you manage future sales.

Distributor Claims

Distributors against manufacturers can register claims regarding price change or discount vouchers.

Dashboard and UI 

Distribution Management System applications are designed with a user-friendly and attractive interface. The dashboard has options to view detailed reports of a salesperson, distributors as well as retailers. You can even view reports while being offline or with a low connectivity internet without getting your works halted.

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