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Role and Importance of Dealer Management System

What is Dealer Management System?

Dealer Management System is a software system that helps enterprises to seamline their process of distribution around the globe under one roof. It can be also termed as software that dealers use to manage their dealership. Through the Dealer, the management system dealer can bring all their vendors and sub-contractor under one roof which makes a transparent system for all. With the help dealer management system not only, distribution is controlled but also it helps businesses to make decisions based on analytics. For say with the help of digitization dealers can easily analyze which are the areas in loss or profit, or which product has more demand in which region. The dealer management system has now become a necessary need for enterprises to adopt.

Role of Distribution Management System:

FMCG sector is a versatile & changing industry which is why innovation is a pioneer in this sector. FMCG sector is always known as a customer-driven market and by increasingly e-commerce usage customer wants to place their order and wants every tracking and receiving abruptly and that is why the need for a Dealer Management system arises and is required even more to have a successful channel. A Dealer Management System can shift entire logistics and operations which helps your business to grow by capturing more customers and trust.

FMCG company requires some extra care or attention since most of the goods produced are used on a day-to-day basis or have a short shelf life and hence to keep a record in warehouses or to maintain the duality of products proper scanning is required to avoid huge losses which generally industries face due to products shelf-life, poor inventory, warehouse lack of attention or mishandling of products. Hence a system is needed that can show the whole process of the product from manufacturing to the warehouse to delivery for a smooth process.

Importance of Dealer Management System:

Let’s look at the below points to understand why Dealer Management System is Important for FMCG Sector:

1. Improved Visibility: By Adopting digitization at every point of distribution channel has helped the FMCG industry to make visibility in their transaction process right from production to reach a target audience. With the help of digitizing the manager or any respective person can check any warehouse or dealer where the requirement is more and where is less and helps in profit and loss analysis too.
2. Better Production planning: Since mostly DMS of an organization is integrated with ERP of the organization which helps to conical all the data under one roof which helps in understanding stock and inventory of your products which helps an organization to plan the future line-ups accordingly. This will help in better planning and less wastage of products.
3. Know even about your remotest seller: With the help of digitization and dealer Management system, you are being the supreme stockiest can know about any seller around any place, even the location is too far or remotest. With the increasing number of FMCG products and demographics, it is easy for you to locate any person who is dealing with your organization. It helps in maintaining and storing data safely.
4. One Process – One standard – No matter how many distributors you have around the state there will be one process for everyone. For every distributor, there will be one process that will be followed by all and will have manual work and back and forth of process.
5. Optimum of use of Resources: The best thing about the dealer management system is that it helps in fuller utilization of resources since it helps in reducing manual processes which also helps in saving time. It also helps in saving operational work, for example, distributors can set up automatic ordering when stock getting finished and the manufacturer can refill it automatically since all the communication is happening under one roof and digitally so all the manual steps can be avoided directly helps in delaying, etc.


We have more than a decade of experience in IT consulting especially SAP processes we have collaboratively transformed the organization’s many processes to make a single framework and execute a smooth journey. By working with various industries across the globe we have been experienced in various frameworks we carried best industries practices.
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