In this day and age, retail businesses deal with a complex set of processes before selling their products. For instance, retailers must ensure that their stock of goods in hand meets customer demand.

If they don’t, they must reach out to distributors of the goods to ensure that they have the products available on time for selling.

In these scenarios, retail companies need to constantly monitor a complex distribution network that includes countless channel partners in the supply chain. 

And so, retailers are now switching to modern tech-driven practices that include digital or online Distribution Management Systems (DMS) that help them create more holistic and robust order management processes so that quality products are available at hand in the right amount, at the right time, and enhance their businesses.

Below, we delve into understanding how a DMS boosts retail businesses through its Order Management component. 

Distribution management system features

Having an effective, fast, and upgraded DMS helps businesses reach customers via retailers and dealers. Retail businesses, which play a crucial role in the everyday lives of people, need prompt response and delivery tracking in their dealings with distributors, especially in order placement, delivery, and performance. This is where modern-day DMS comes into play. 

Some of the key features and components of a DMS include:

• Production Planning and Inventory Management

• Order Management and Sales performance

• Route Optimization and  Customer Service

• Supply Chain Visibility

• Performance Analysis to Minimize Errors

• Compliance, performance, and Monitoring

Among these, order management, which requires instant order processing, sales performance throughout the chain, and eventual delivery to retailers, is greatly boosted and improved with an automated and prompt DMS. One small error in the order processing and management can lead to a big chunk of money lost in the transaction. 

For instance, retailers collect goods or items from distributors. In the process, goods are distributed to regional sales managers (RSM), then to area sales managers (ASM), followed by territory sales managers (TSM), and finally to the sales representatives (SRs) who execute the delivery of goods to retailers. 

The DMS Advantage in Order Management 

So, how does the order management process work in a retail business automated by DMS?

First of all, order management begins with order placement and ends with the delivery of the item or product to the customer, in this case, the retailer. For example, a key retail business is food. We purchase food from grocery retailers. So retailers need a constant supply of goods at hand. 

To meet that, a retailer sends a bulk order to purchase goods. Then, as the ordered goods reach the retailer, the delivery process ends. However, the journey of the items leaving the distributor and hitting the retailer requires thorough monitoring. Why? Each step has various players like RSM, ASM, TSM, and SR, and processes need supervision for proper implementation. 

Here are the key advantages of DMS in order management:

Fast & Direct Dispatch

You can get direct dispatch from your distributors, and fulfill orders faster with few clicks. For instance, modern DMS systems have a module or component integrated into their systems that allows retailers to inform their distributors about the availability of products in their stock.

In that way, the retailers can communicate with the distributors about stock requirements and the schedule of making the delivery to the SRs. In that way, both the distributor and its retailer can ensure the availability of products for selling on time. 

Real-time and timely View 

You can easily view order management from placement to delivery, simplifying the process in the supply chain,  minimizing possible errors or lags at the point of sales (POS), and ensuring timely delivery or fulfillment of orders. 

For example, you can track how much inventory is in the warehouse by accessing the DMS portal and how much is on route to you. Additionally, one or two clicks can show you the number of stocks available for selling or whether your inventory is stocked out.

Cost-effective and efficient route

You can ensure the orders are traveling to you in the most efficient and cost-effective ways, keeping legalities and any other compliances intact. For example, if the bulk order is to be carried inside the city, you can opt for the shorter delivery route, reducing transportation costs.

If the goods are to be transported from outside the city, you may have to bear the transport costs of carrying the goods to your place of selling. Here, DMS tracks, monitors, and reports the movements and current status of the goods and personnel at any given point in time.

Optimal data analysis

You will be able to capture and analyze sales data automatically, enabling better sales strategies and distributor engagement with automated sales performance systems. For instance, DMS allows you to track sales personnel across the region or district in real-time monitoring so that the products reach you timely and in good condition. 

For this, your DMS shows the visual positions of SR on the routes where sales personnel are supposed to be stationed or traveling. You can usually view these instances via visual maps presented by the systems. 

Hassle-free and smooth return system

You may at times have to return goods that are either not in good condition or not in demand anymore. For efficient handling of returns, DMS offers retailers a range of return options with built-in processes. This mitigates the hassles and you remain satisfied, too. 

Indirectly, DMS allows a long-lasting, fruitful relationship between retailers and distributors through a smooth and timely exchange of goods.

Automated Retail Order Management in Bangladesh

Bangladeshi companies have started to utilize the benefits of DMS to boost their order management. This step has helped many firms to improve and streamline their order management systems and distribution networks. 

Sokrio Technologies Ltd’s Sokrio DMS, a mobile and web-based software solution that helps retail brands achieve their sales and distribution goals in the Retail, Consumer Goods, and Manufacturing industries, is a great example of the positive impact a well-developed DMS can create. 

In the presence of inefficient distribution, poor inventory management, lack of real-time data, and a highly competitive retail market, Sokrio boosted the retail Sales And Distribution process by 20% in just six months. You can read the full story here. 

Conclusion

Embracing modern and up-to-date distribution management practices not only increases retail sales and business outputs but also helps establish a long-lasting relationship with customers in this highly competitive FMCG and retail market of Bangladesh. 

Through advanced and improved software like Sokrio DMS, retailers can reap the benefits of the features and enjoy improved market coverage and strengthened customer relationships, ensuring no stone is unturned in their supply chains and distribution networks.