Distribution is the division of products that are supplied from a manufacturer to a distributor or retail outlet. Distribution can either be for physical products or also for digital products like e-books and audio/video software. Wholesale distribution involves physical distribution or transportation of products by trucks, cars and airplanes. It also involves tracking and delivering products to the customers as well as collecting payments from the customers.
Advantages of distributor management system/App
1) Minimize Resources
2) Automated Inventory management
3) Automate order management
4) Marketing Promotions and Prices
5) Easy contracting and approval
6) Easy Pickup and Delivery Management
7) One App platform for all communications
8) Easy Payment management
9) Increased Productivity
10) Analytics and reporting
The main job of a distributor is to coordinate and manage the flow of goods from the manufacturer to the customer. Distributors can locate distributors in different areas and towns. They usually make contacts with wholesalers who are willing to ship the products and collect payments.
They also have to make contracts with the wholesalers and establish the terms and conditions under which they will deliver the goods. Apart from these, they are responsible for checking the stock in warehouses and making necessary arrangements to ensure that the stocks reach their destination on time.
This distribution and marketing management system include various other processes that are crucial in ensuring the smooth functioning of a distributor. One of these is that they need to maintain good relationships with all the manufacturers that they get contracts with. If there is any dispute about the quality of the product or if there is any malfunctioning of the product, then they need to quickly resolve it so that it does not affect the contract that was signed between them.
Use of Delivery Management software for Distributors
A distributor management system is very effective in helping companies reduce their operational costs. This is because these systems keep track of the distributor’s expenses and controls them. If one distributor misplaces some products or if he sells below the minimum amount that is required by the contract, then he will be alerted by the system and will have to reimburse the cost or else terminate his partnership with that distributor.
Similarly, if he sells products that he does not have a license for, then he needs to get these products licensed so that he can sell them legally and avoid any sort of loss.
Also, if there are any discrepancies between the product that has been supplied to the distributor and the product that has been purchased from him, then this can be quickly investigated. For instance, if a distributor sells products that have higher prices than allowed by the licensing agreement, then he needs to find out whether these prices are part of his policies or not.
This way, not only will he be in violation of the contract that he signed with the manufacturer, but also he will lose the business that he is legally entitled to. This is because distributors who breach the terms and conditions of a contract stand to lose both the manufacturer and the retailer. Therefore, this is a vital part of the whole chain of the supply chain and a distributor cannot do without it.
Improve overall efficiency
Apart from this, a distributor management system can help a distributor improve his overall efficiency and effectiveness. If there is any part of the product that is causing him problems in locating suppliers or distributors, then the system can help him eliminate these hindrances.
For instance, if the distribution area does not have sufficient number of distributors, then the price for each distributor can be adjusted to suit the needs of the buyer. Or, if some products are having a high demand in a certain location, but not in other areas, then this can be solved by setting up warehouses where the products can be stored until they are in demand. Thus, there will be plenty of flexibility in every aspect of distribution.
The most important advantage of a distributor management system is that it helps the distributor to make timely decisions and forecast future demand accurately. With accurate data available at regular intervals, the distributor will be able to anticipate what the demand will be able to plan according. He will be able to ensure that the stocks are available and ready when he needs them. In addition, the system helps the distributor to establish the optimum quantity of each product to be distributed.
Thus, the distributor is able to sell the minimum quantity of a particular product, while ensuring that the maximum quantity is bought by the customer.
Apart, from all the above mentioned advantages, a distributor management system will also help the distributor to increase the sales of his products. This is possible only if the distributor is able to determine the demand for the product accurately. A distributor can do so by setting up a system that provides information about the product, its use and the target group for which it is intended to serve.
The distributor management system will help him to plan for the supply of the product to the right place. Thus, proper planning, efficient supply and easy sale go hand in hand.