Why do FMCG/FMCD companies need a DMS?

FMCG companies across the globe enjoy the benefits of having a huge market potential because of the size of the population of a country and is characterized by a well-established distribution network between the organized and unorganized sectors. Every manufacturing company looks for multiple ways to optimize costs, penetrate new markets and increase revenue since it works on the low margin & high volume model. With such a high volume of production and wide spread out of channel partners, it becomes difficult for manufacturers to manage the entire distribution network through manual ways of working.

The manual process works in the following way:

  • Company’s dedicated executive will coordinate with Regional Distributors (RD) to track sales and inventory on daily basis usually over a call or mail.
  • RDs will provide the information according to their availability and convenience.
  • Company’s executive then manually enters the data into the system and then forwards to the management for evaluation & business decisions.

The said process is a lengthy one for covering a wide network of RDs and leads to a lot of wastage of time, cost and resources.

Therefore, to overcome this challenge, Distributor Management Software comes into the picture. In simple words, DMS allows manufacturers to have a complete control over their distributor network spread-out by integrating with their Tally/Busy for timely business decisions.

A number of Distributor Management Softwares are available in the market with their own unique application and features, but a careful analysis of it’s benefits needs to be considered before opting for one. Consider the following list of short term and long term benefits manufacturers should be looking at before deciding to invest in one:

1. Short Term Benefits:-

  • Product Linking & SKU Mapping: There’s a possibility of the difference between the item code at manufacturer and distributors end. A DMS should give the power to the manufacturer to automatically identify the difference, align it with distributors data and map the SKU accordingly.
  • Complete Control over Distributors Activities: A good DMS system will give you a complete control over distributor’s MRP, item alteration, ledger alteration, back date entries, negative stocks, reorder levels etc.
  • Stock Management: An ideal DMS should help manufacturers avoid out of stock situations so that no business is missed out on. It gives them the ability to track movement of stock from distributors end, visibility of damaged & undamaged stock and maintain minimum amount of stock across multiple distributors.
  • Sales Force Automation: Every company is on the look out for a sales force automation software. Therefore, a good DMS software should provide integrated sales force automation to validate sales executive visit, track tertiary sales, monitor brand visibility, evaluate market competition etc.

2. Long Term benefits:-

  • Targets & Achievement Measurement:You can plan better sales strategy and get more accurate projections by visualizing targets vs achievements using a Distribution Management System.
  • Increased Productivity: By automating the various channel processes such as order processing or real time communication of distributors sales, organizations can save a lot of time which can be further utilized for more productive tasks rather than wasting on coordination and follow ups.
  • Channel Management: A classic requisite of an ideal DMS is its ability to track individual channel partners performance through tracking their sales data. Thus, empowering organizations to take effective decisions and offer price discounts to specific distributors to boost sales.
  • Ecology of Happy Distributors: Tracking secondary sales accurately would help you enable seamless distributor claim and scheme settlement. It will also enable manufacturers to achieve faster stock replenishment thus, creating an ecology of happier distributors.

There are huge benefits that a FMCG/FMCD company can secure by using a Distribution Management Software. Making sure that right DMS is deployed is a critical factor for ensuring maximum benefits out of one and staying ahead of the game. SALESMI is a first of its kind software that can help you achieve all of the above by tracking secondary & tertiary sales and streamlining key factors of your channel sales from faster stock replenishment, reduction in inventory carrying costs to better production planning and achieve greater channel visibility without the hassle of changing systems at the distributor’s end.

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