Technology Trends 13 Oct 20 Vivek Agarwal

It really excites us when we read or hear about the potential that the Indian market holds. It's said, India is still on the track to emerge as one the largest economy, expected to translate into a GDP of $5.5 trillion by 2030, from about $2.5 trillion now*. Naturally, a population of ~1.3 billion will demand more goods and services, all over from small scale to large scale businesses leading to millions of transactions between brands, distributors, retailers, and customers every single day.

But with such evolving market dynamics, numerous challenges are faced at the ground level by the businesses. One of them is the supply of goods at the right time and the right place to the consumers by this extensive network of distributors, super stockists, and mediators. This army of channel partners needs to be enabled with the latest tools and technology before any other stakeholders in the supply chain, as they still rely on manual inventory tracking tools, sales billing handbooks, and other obsolete systems.

Many home-grown and MNC brands have started moving to a more robust and transparent Distribution Management system to overcome these challenges. But, before delving into the opportunities, let's understand what precisely a Distributor Management system is.

"A Distribution Management System streamlines all distribution workflows and activities, improves supply chain efficiency, eliminates stock-outs/overstocking, and allows companies to access real-time data from distributors."


distribution management system

It's a gateway between the FMCG brands and retailers. A silver bullet that holds the power of managing your end to end product delivery, right from capturing sales orders to invoicing.

Opportunities for Distribution Management System

The availability of the system relieves out the working of the supply channel. They provide numerous opportunities for the distributors to ease out the complex process of distribution channels.

opportunities for distribution management system

1. Authenticity of data

Manually operating and managing the data can be hectic and error-prone, as the distribution is a lengthy process. The Distribution management system tracks the orders, claims, invoices, stock details, etc. easily. The data provided by the system will be accurate and help the distributors with future decision-making.

2. Strategic decisions

The details provided by the DMS like multiple KPI Dashboards, Demand-Supply analysis helps in quick decision making and forecasting. In-stock statements, creditors' limits, reorder of the stock can be acquired by the DMS. It has well-informed data, leading to taking up strategic decisions for the growth of the business.

3. Augmented Sales

With the well-formatted data from purchasing to stocking, till the sale of the products to the consumers, a DMS can boost sales as it will reduce the time required to carry on the operational processes to a great extent. With DMS's help, distributors can increase their sales using the analytics of the various information provided like KPI trends, Zone wise demand trends, etc. 

4. Cost and Time minimization 

A distribution system has different stages, like generating challans, order confirmation, invoicing, etc. Appointing staff for each stage can raise the cost of the working capital.  To avoid the rising cost of capital and hassle-free working of the distribution, a DMS is required, which can acquire automated data, which, in turn, reduces the cost and time consumption at various stages.

5. Efficient inventory optimization

The Distribution management system provides access to well-formulated data. It efficiently manages information like batch details, stock at various warehouses, and batch numbers and dates. The distributor is empowered with complete control, and it prevents under or overstocking of the products.

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Challenges to adopting a Distribution Management system

As rightly said, India is a land of villages, and there are numerous challenges faced. The distribution channel is embedded down to the country's remote places, and not only in the metros.


Challenges to adopting a Distribution Management system

1. Insufficient skilled resources

In a country like India, most skilled people opt to settle in urban areas. The rural areas face a scarcity of skilled workforce. As the Distribution channel is spread across remote places, it is highly challenging to employ people equipped with mastering and running the system software. Even when they acquire knowledge, it's tough to shift their thought process and adopt new technology.

2. Inadequate capital

Many times distributors face the challenges of inadequate capital. Issues like a sudden rise in the price or a decrease in demand in the market are common. In such conditions, many distributors repel the automated system's application, as it requires investment. They are opinionated that their long-established maintenance method is better, unaware of the distribution & management system's benefits. 

3. Disconnected technical infrastructure

Many distributors are still of the idea that these automated systems are meant for corporates. With a lack of operational comprehension, unavailability of technical facilities, and the remote areas of working, these form significant barriers to allow distributors to automate their systems with technology and ease their work.

4. Multi-brand distributors 

Many distributors have to operate many different brands as they have a conglomerate of brands under a single roof. Processing and managing other brands' data under their various portals is challenging due to time and labor constraints.

5. Reluctant towards modernization

Most of the distributors follow the traditional approach to their business. They still practice the age-old format and rules followed by their forefathers as they believe that it is difficult to manage and operate automated new generation software. It is challenging to alter their opinions as they can sometimes be strong-headed.

In a vast country like India, the distribution management system eases the complexity of the market. It can provide the accomplished out and out automation of a distribution channel.  

FieldAssist provides you with an easy and scalable distribution management system. It is equipped with complete automation software, master and price control, purchase and sales management, inventory management, analytical tools, and a much more simple, to use distribution software. With FieldAssist Distribution Management System, you can save a lot of time, money, and effort and lead to the business enterprise's success. Get in touch with our DMS specialist today.

Vivek Agarwal

Passionate about helping people through social work, Vivek empathizes with the worldly struggles through his poetry. Professionally, he is an enthusiastic digital marketer, specializing in SEO, product marketing and WordPress Optimization.

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