According to research by the International Data Corporation (IDC), global spending on digital transformation itself will reach a staggering $6.8 trillion by 2023. Over the past years, consumer goods companies have increased investment in their technology budgets and are implementing new digital technologies. However, several multi-billion dollar organizations housing thousands of brands and products, with complex processes and an insane amount of data, are missing the vital component to support digital transformation. A distribution management system lays the foundation for a true digital transformation strategy by providing complete visibility into route-to-market processes and by aligning with the future business goals of a modern consumer goods brand.
By understanding what a Distributor Management System can do and how it can help you overcome some of your biggest challenges in the field, you can grow your consumer goods business effectively.
Operational Control and Transparency
The lack of operational control and transparency in the supply chain limits the ability to ‘see’ what happens in the processes and manage them. Transparency in the supply chains benefits every route-to-market user by helping them better understand the processes and activities in the distribution channels. The distributor management system will track and maintain inventory in multiple locations across various distribution centers and provides complete visibility into secondary sales and inventory. Distributors can easily track the movement of inventory- saleable or damaged and can manage stock transfers between distributors without any hassles.
Master data management capability on a Distributor Management System allows the creation of new hierarchies that categorize the SKUs, geographies, businesses, and resources that a consumer goods business may require. It improves usability, manageability, and reporting capability and transfers the power right into your hands.
Automated Ordering and Allocation
When the ordering process is inefficient, it delivers a less responsive and inconsistent service in your business. Order management capability on distributor management software can automate and streamline the order fulfillment process. From order acceptance to shipment – DMS captures, manages, and processes sales orders, giving businesses greater insight into the sales operations.
What more? The bulk allocation feature of Distributor Management Software can take orders for large volumes of SKUs or Product Units and can allocate stocks automatically as per the inventory level. Sending customizable invoices directly from the DMS platform generates correct billing without impairing the accuracy of the financial records.
Enabling digital transformation within the order management process helps to achieve a seamless ordering experience as distribution partners streamline the distribution management workflow and plan the logistics of getting products onto the shelves.
Real-time Inventory Management
Low inventory levels equal a high risk of out-of-stock, while excess inventory results in unsold products as the quantity exceed the projected demand. With real-time inventory visibility on distributor management software, distributors can view updated inventory levels from a single dashboard and receive alerts when it drops below a threshold across all sales channels. You can even set up the DMS to raise auto-replenishment orders for stocks in your distributor point.
Sales Force Performance
When your sales teams complete tasks without seeing where they stand against KPIs and cannot measure progress over time, they will not be able to exceed their goals. Decision-makers in the organization will receive inaccurate or incomplete information and can end up complicating the sales operations.
Distributor Management Software provides you the ability to measure sales rep’s performance in real-time against KPIs and assists in evaluating the effectiveness of promotions and other campaigns. As leaders convey the KPIs to their sales reps, DMS will help them self-evaluate and improve performance. DMS can drive comprehensive insights into your sales activities and helps your reps identify improvement areas.
Efficacy of Promotions
Channel performance monitoring on Distributor Management Software measures activities and performance of each retailer channel. You can assess channel effectiveness, productivity, and profitability. With insights into channel performance, distributors, trade marketers, and sales reps can discover patterns and transform their sales and marketing strategies.
You can extend channel-specific discounts or promotions on a Distributor Management Software and monitor them, allowing you to compare multiple promotions against one another.
In today’s age of technology, all organizations looking to increase their productivity and reduce costs are turning to cloud distribution management software for its many benefits. A distribution management system can give a CPG company a competitive edge and help achieve route-to-market excellence.
Here are three key factors to consider when selecting a Distributor Management Software for your consumer goods business:
1. Identify your business needs clearly
Consider the course of your regular sales processes and activities and identify your business requirements. A powerful solution can boost your business success only if you have concrete goals before zeroing in on the suitable DMS.
2. Simplify and eliminate the double work involved in the calculation
Consider an integrated solution with an inbuilt accounting feature to create and manage recurring entries, accruals, reversals, and budgets. The DMS solution should be able to support custom financial reporting for your business.
3. Think long-term as you prioritize your objectives
Once you gain clarity on your long-term goals, you can better prioritize what you require from a DMS. While this can be a work-in-progress in this phase, building this framework first helps you ultimately decide what you get out of it.
Book a demo with us so we can help you develop a strategic digital transformation plan and bring your distribution management goals into reality.
Published by September 20, 2022 by Ivy Mobility