What is Distributor Management System?

Distributor Management System - ERP Meaning
Distributor Management System

Definition of Distribution Management System?

A Distributor Management System (DMS) streamlines the business processes, maintains supply chain efficiency, solves the issues related to stock-outs and overstocking and companies can access real-time data from distributors.

DMS offers a single platform for managing the complex, often convoluted series of steps it takes to process and deliver goods. Instead of relying on disparate, disjointed software packages, DMS brings all your logistics functions together in a single system.

Meaning of Distributor Management System

Distributor Management System software (DMS) is a fundamental requirement for any company of consumer goods. This acts as a basic component in companies’ route-to-market. They are helpful to maintain the supply chain between manufacturers and a myriad of Distributors. Some key functions provided by DMS are retail activities, trade promotions, competitive insights inventory etc.

A DMS in the modern version has the functionality to streamline all distribution workflows and activities, improve the efficiency of the supply chain, eliminate stock-related issues and companies can access real-time data from distributors. The sales and distribution activities can be boosted with the right solution even in a fragmented marketplace.

What is Distributor Management System?-ERP Meaning
What is Distributor Management System?

The Real Need for Distributor Management System Software

To know the exact usage of Dealer, Distributor Management System, you have to understand the critical challenges that occur through Channel Sales Management in India.

  • Number of distributors having their businesses in small and  unorganised entities that included inadequate capital and tech infrastructure.
  • Multi brand distributors face the difficulty to manage the data for  numerous brands.
  • Large distributors are unable to collect the proper actionable data and information.
  • The consumption of real time data is low for orders, inventory, claims and returns stock outs or over stocking.
  • The internet and sub-standard logistics Infrastructures are penetrate in a short limit.

This lack of information management will affect the entire process of the sales pipeline.

What type of Challenges Manufacturers have to overcome?

Before the implementation of a Distributor Management System (DMS), there arises a number of issues that can be discussed below:

  • Manufacturers are required to manage a large network of big and small distributors, in order to get the maximum coverage across multiple regions.
  • The different levels in a distribution chain, compounding cost and inefficiency are important for the penetration of rural or special areas which are hard-to-reach. It is  possible that manufacturers may  be unfamiliar with distributor operations in these localised areas. Thus they will be unsuccessful to get appropriate incentives or support.
  • Multi brand distributors may be stuck in the collection of data that Manufactures require for the distribution of various brands.
  • It rapidly creates the problems for the manufacturer to know the exact quantity of inventory that is held by the distributor vs. the inventory that has been already sold.
  • Thus, it can be problematic for  manufacturers to handle the production with limited data and insight. And it may be also challenging for them to know about what’s actually processing in the field.
  • The lack of real time data about orders, inventory, claims and returns will result in stockouts and overstocking.
  • Due to the limited insights, the manufacturers face difficulties to manage Trade Promotions through the Distributors, which comes out as a wasted marketing spend.

However, it seems difficult to tackle all these challenges at once. These difficulties are more, especially with the high demand and rapid movement that are the features of the FMCG industry. This proves the importance of cooperation and carefully curated relationships between the Distributor and Manufacturer.

The Business Impact of Distributor Management System Software

With the help of a DMS implementation system, a number of improvements comes out as a strong result. Although some will come as a quick performance while others will take some time but they definitely result in a larger impact.

Tactical Improvements from DMS

  • Control over Distribution Activity: DMS is an effective source that will be helpful for  manufacturers to control Distributor’s MRP. As well as, an effective DMS will provide the item alteration, ledger alteration, negative stocks, back date entries, and others.
  • Stock Management: While using a functional DMS platform, you must make sure that there should be no loss in the business. Even situations like out-of-stock can be avoided through stock tracking. Stock management moves from the Distributor and visibility of damaged vs. undamaged stock. For this, a minimum amount of stock must be maintained across sales outlets.
  • Sales Team Integration: The integration of intelligent, automated software with the Sales Team is precious as gold when it comes to managing the track of market competition, brand visibility, sales executive visits, and many more. To increase productivity data should be democratized.

Strategic Improvements from Distributor Management System

  • Tangible Achievement with the Measurement of Target: The planning of cohesive sales strategies can be created by seeing the end-to-end information. A long term utilisation of DMS will provide you with a more accurate project and predict growth goals and successes.
  • Improve Relationships with Distributors: A better acknowledgement of data insights from the Manufacturer will get clear expectations. Clear expectations and fulfillment of needs within the time will lead to a stronger business relationships. Moreover, understanding of stock replenishment needs supports a peak level of profit strategies.
  • Channel management: You have to understand the performance of Distributors that can be based on individual level. This will help to track the data of their sales with clear insights and guides about the future relationships with manufacturers.
  • Time and Energy Re-allocation: The assorted processes like order processing and communication of Distributor sales in real-time decrease the time consumption  which can be utilised for more productive tasks. Let’s think about why you spend your valuable time on follow ups and liaising when a DMS can be an alternative for you?

People also ask for Distributor Management System

What is DMS in Supply Chain ?

The Distribution management system (DMS) is a software system that manages the entire supply chain of your business. It is responsible for the information flow between the different departments in the supply chain and coordinates the workflow of the people in those departments. DMS is a core part of the supply chain management system and also responsible for the smooth running of the whole supply chain in business.

What are the elements of Distribution Management Software?

The elements of an DMS include: Product information systems, warehouse management, inventory control, warehouse management, logistics, transportation, warehousing and distribution, quality, finance, and customer relationship management.

What is distribution management in power system?

The DMS (Distribution management system) is the software system that keeps track moment of the electricity. It’s the platform that enables power system operators to efficiently and effectively manage the entire process. Also its help to operators for making decisions to ensure the system is balanced and running smoothly. Main purpose of DMS is to make those decisions easier and more efficient.

How does distribution management Software work?

In a nutshell, distribution management software is a platform that helps ecommerce sellers manage their inventory and shipments. It can be used to manage inventory across multiple sales channels and locations, and to keep tabs on inventory levels and sales data. Some software also includes tools for processing orders, managing shipping, and creating shipping labels.

Why do distributors need ERP Software?

In today’s business world, distributors who do a good job at managing and distributing their products can differentiate themselves from their competitors. According to a recent study, e-retailers who have distribution management systems in place can expect to see a 35% increase in their annual revenue. The main reason for this, of course, is because they can better manage their inventory and distribution costs.

What is distribution ERP?

Distribution ERP is a specialized form of enterprise software designed to help businesses manage their supply chains. It has the same basic functions as other types of ERP, including accounting, inventory management, and CRM. But instead of focusing on internal processes, distribution ERP focuses on moving products from where they’re made to where they’re sold.

Is it always necessary for a software in distribution?

Distribution software is used for a number of reasons, but most of all, they are used to track and manage the shipment of products from a factory to a retailer. This software is specifically designed to manage the distribution and logistics of the product, where it is made, and how it will be sold. ERP is need for distribution business for fast paced software management.



The role of the distributor becomes important through the ongoing product overflow and retail level saturation.

The optimization of FMCG distribution becomes critical through the automation of a distributor management system (DMS). A perfect Distributor Management System can access the distribution of various processes, improving the efficiency of the supply chain. Also, eliminates stock-outs and overstocking and provides complete access to companies for real-time data from distributors.

Leave a Comment

Your email address will not be published.