Overall, successful distribution involves many moving parts and methods requiring a strong distribution management strategy fueled by real-time information. Or, finished products can arrive too late, allowing a competitor to seize the lion’s portion of market share.Įffective distribution is so crucial that sub-discipline practices became an integral part of supply chain and inventory management, such as just in time inventory. Raw goods can arrive too early and go bad before they are used. order processing and communication of Distributor sales in real-time) frees up a lot of time for more productive tasks.East, Nordics and Other Regions (opens in new tab)ĭistribution management has long been a business challenge. Time & Energy Re-allocation: The automation of assorted processes (e.g. Clearer expectations and removal of uncertain demand fulfilment needs creates stronger business relationships. In addition, understanding of stock replenishment needs supports a more profitable ecology of Distributors.Ĭhannel Management: Understand the performance of Distributors on an individual level - tracking their sales data delivers clear insights for how the Manufacturer can guide the relationship going forward. Improved Relationships with Distributors: A deeper understanding of data insights from the Manufacturer will lead to clearer expectations. The ability to more accurately project and predict growth goals and successes is a real asset of utilising a DMS long-term, and one that is invaluable in today’s ever-changing business landscape. Tangible Achievement and Target Measurement: Seeing the information end-to-end facilitates planning of cohesive sales strategies. With limited insights, it also becomes extremely hard for Manufacturers to effectively manage Trade Promotions through the Distributors, resulting in wasted marketing spend. The lack of real-time data on orders, inventory, claims and returns could result in stockouts and overstocking. So, it can be challenging for Manufacturers to manage production with limited data and insight into what's actually happening in the field. It swiftly becomes problematic for the Manufacturer to know how much inventory the Distributor is holding vs.

Multi-brand Distributors may have difficulty collating the data that Manufacturers need across the various brands they distribute. In these more niche, localised areas, manufacturers may be unfamiliar with distributor operations and thus fail to provide appropriate incentives or support. Penetration of rural or generally hard-to-reach areas can necessitate several extra levels in a distribution chain, compounding cost & inefficiency. Manufacturers find themselves needing to manage huge networks of big & small distributors to get their desired coverage across multiple regions.

Distributor management system