What is a distribution management system and why is it necessary for your distribution business?

Written by Mohammad Salman Hossain ‌ on January 13, 2022

Moving a product from point A to point B may be the easygoing definition for distribution, but in reality, it captures a lot more than that. A lackluster distribution management may be what is holding your business back from being exceptional to your consumers. When a small change can turn over profitable results, the smartest decision is to grab that chance and capitalize on it. Here we will take a look into how a proper distribution management system, a utility quite easily overlooked, can take your business the extra mile.

What is a distribution management system?

A distribution management system or DMS is the set of business processes combined with automation tools that enable the supply chain to function efficiently and sustainably. DMS refers to automated software that is able to collect, organize, analyze and display real-time or near real-time distribution system info. It is a company's gateway to executing and getting information out of complex distribution system operations. Automating the repetitive manual distribution tasks and increasing time efficiency, a good distribution management helps a company build up trust with its customers.

Additionally, an advanced distribution management system (ADMS) refers to the software platform that supports all the functions of distribution management and optimization in addition to functions that automate the process of outage restoration and performance optimization of the distribution plans.

A DMS works with multiple factors to reengineer the distribution process, such as route optimization, fleet management, fleet intelligence, Inventory management, Delivery orchestration system, data analysis.

Factors like these sum up to a complete DMS that keeps a distribution business up and running.

Why is a distribution management system necessary?

A successful distribution business requires efficiency in every single step of product management, starting from dispatch to delivery. The necessity of a Distribution Management System pertains throughout the process. Here are the following ways in which a functional DMS can boost business and ultimately result in success.

Impeccable organization from start to end:

A distribution management system allows a business to organize every single step in the supply chain. DMS is imperative in collecting and analyzing information in every single step of manufacturing, inventory, warehouse management, production delivery. Having all the information at hand leads to being in control over the whole operation, which enables faultless monitoring of the entire situation that is taking place in the supply chain. Transportation & Route Optimization:

A sustainable way of transportation of finished goods is of utmost importance in the distribution process.

  • Route Optimization, a vital part of any distribution management software, allows a business to make transportation and delivery as convenient as possible by eliminating manual route planning time.
  • Accumulation of data from different delivery points and timings contributes to fleet capacity optimization. This keeps the products that are dispatched in the most efficient order for delivery. Which ultimately provides more effective ways to carry out deliveries.

Convenient Inventory Management:

One of the biggest challenges of supply chain management is ensuring the amount of finished products in stock aligns with the customer's needs at the right time. Having a bulk amount of products but no demand for it or having a huge demand for a product in the market but not being able to supply it; both lead to losses no business wants to account for. A DMS helps analyze and regulate the customer needs and availability of products in the inventory accordingly.

Cost Reduction:

The whole operation of a running business can become a lot more cost-efficient when it has a Distribution Management System handling a lot of essential activities in one go with time efficiency. A DMS does the tasks of multiple people by itself, cutting down the wages payable and optimized route planning reduces fuel costs, providing the company with relief in its finances. Overall Analysis and Management of the Distribution Process: With the help of Fleet Intelligence and external analysis of the market, the distribution process of products can become highly convenient for suppliers and customers alike. A DMS will collect information regarding every step of the distribution process and provide the business the intelligence it needs to stay ahead of its competitors in the market. The delivery orchestration system embedded within a DMS gives distribution management a new height by offering-

  • Planned dispatches according to optimized routes.
  • Live communication with drivers and helpers.
  • Real-time updates from delivery moments
  • Route comparisons
  • Electronic proof of deliveries

Customer satisfaction:

The prime goal of any business is to satisfy its customers and add value in the best possible way. Having a loyal customer base is an asset to any business. A business needs to earn that loyalty by fulfilling the needs of the customers by supplying products in time. A DMS will do this job effectively by easing the process from the distributor's side, thus also making it quick on the receiver's side. Regardless of who your customer may be: direct sellers, wholesalers, retailers, distributors and brokers, the chances of them being satisfied with the service increases monumentally with a good distribution management system. Some parts of the process are:

  • Time efficiency: A DMS makes sure all the decisions you make are as time-efficient as possible. Time taken within the distribution process equals to quicker delivery, leading to a satisfied client.
  • Ensured Safety: The DMS, through real-time updates, tracking and geofencing, electronic delivery proof ensures that the product has not been tampered with and offers maximum security.
  • Better price points: Route analytics and optimization cuts fuel costs, and automated software eases up manual work, thus creating space for the company to reduce their service charges which every customer wishes for.
  • Display product availability: Automated distribution management system allows real-time inventory updates. Which opens the doors for customers to check if a product is available at any time and even helps them pre-order products that are set to be stocked.
  • Ease of transactions: All payments are received and updated instantly through the automated system and payment status updates are instant and accurate thanks to the distribution management software, making transactions as easy as possible for the customers.

All these benefits can be attained through a reliable distribution management software, which can take over the part of automation and analysis that holds so much value for a distribution business. Such a software specializing in the mentioned fields, driven by data intelligence and analytics is Nuport.

Why Choose Nuport?

With tech incorporation in almost all ranges of industries such as FMCG, building supplies and e-commerce, dominating the distribution process requires a solid distribution management system without a doubt. Nuport offers you a DMS that will change the face of your entire distribution. With live data accumulation and efficient decision-making, it automates the repetitive tasks and provides you with the tools needed to make lightning-fast decisions. As competition gets more challenging every passing season, incorporating an advanced distribution management system in your business is what will take your supply chain management to the next level and Nuport, is the ticket to the turnaround your DMS might be in need of. So, schedule a demo today!