Numerous functions are involved in distribution, including but not limited to – inventory management, customer service, warehouse planning, receiving, handling, and managing materials, information sharing, and more. There are two types of distribution management: sales or commercial distribution, and logistics or physical distribution. Tech-savvy companies use distribution forces to gather market intelligence which allows them to evaluate their competitiveness. You need to collect and share important information that will help in the identification of growth opportunities in the market and help you stay competitive. This is especially true of larger corporations with numerous suppliers.Įffective management of distribution in such cases can only be achieved when they automate processes through the implementation of distribution management software.ĪLSO READ: Guide on How Do ERP Systems Workĭistribution management today is not merely about moving your products from one point to another. To be successful in this activity, it is imperative that the whole distribution process is managed with precision. The ability of a business to attract customers and be profitable depends significantly on how well they manage distribution. The importance of distribution management can be understood from the fact that if implemented properly, it can help businesses stay competitive and deliver customer satisfaction. It is a critical element of the business cycle, especially for wholesale dealers and distributors.įor any business, the speed at which they can turn their goods over determines their profitability. Several processes and activities like managing the raw materials supplier, warehousing, logistics, supply chain, packaging, inventory, etc. To manage distribution successfully, you have to have a robust strategy backed by real-time data and efficiently handle the different elements involved.ĪLSO READ: Important ERP Modules and Functions What Is Distribution Management?ĭistribution management refers to the process of supervising the movement of raw materials or finished products from the vendor to the manufacturer, from there to the wholesaler, then to the retailer, and finally, to the end-user. Raw materials being delivered earlier than required and getting damaged, or finished products arriving too late to fulfil consumer demand – both are potentially disastrous for business. Distribution management is a business challenge that needs to be effectively tackled to ensure proper growth.
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