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Benefits of Distribution Management

Distribution management refers to overseeing the movement of goods from suppliers to point of sale, including packaging, inventory, warehousing, supply chain, and logistics. It helps companies manage their supply chain and logistics activities like warehouse management, inventory management, and order management through integration with financials and sales. Benefits include improving customer satisfaction while minimizing costs through real-time visibility of inventory and optimizing processes, reducing order times through automated order processing, knowing true costs through real-time profitability analysis across the supply chain.

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Annapurna Purohit
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31 views2 pages

Benefits of Distribution Management

Distribution management refers to overseeing the movement of goods from suppliers to point of sale, including packaging, inventory, warehousing, supply chain, and logistics. It helps companies manage their supply chain and logistics activities like warehouse management, inventory management, and order management through integration with financials and sales. Benefits include improving customer satisfaction while minimizing costs through real-time visibility of inventory and optimizing processes, reducing order times through automated order processing, knowing true costs through real-time profitability analysis across the supply chain.

Uploaded by

Annapurna Purohit
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Distribution management refers to the process of overseeing the movement of the goods from the

supplier or manufacturer to point of sale. It is an overarching term that refers to the numerous activities
and processes such as packaging, inventory, warehousing, supply chain, and logistics.

Having a successful distribution management system is also very important for businesses to remain
competitive and to keep the customers satisfied.

Distribution management solution helps companies to manages their supply chain and logistics
activities, including warehouse management, inventory management, and order management (sales and
purchase orders), and integrate these activities with the company’s financials and sales.

Benefits of Distribution Management

Improve customer satisfaction while minimizing cost – Efficiently manage the distribution processes with
real-time visibility of the available inventory, inventory in transit, reorder quantities, and inventory
costs. Minimize the inventory process and the costs; optimize quoting, acceptance, entry, and fulfillment
processes.

Reduce order times – Eliminate delays through the automated sales order processing and shipping order
generation. Set rules to manage the multiple warehouses, returns, credit limits, drop shipments, and
more.

Know Where Your Business Is – Ensure a steady supply of materials by optimizing and automating your
purchasing processes.

Know your true costs – Determine real-time profitability by the warehouse, product line, location, or
business unit. Use real-time information to control the costs across the entire supply and distribution
chain.

In the modern business world, middlemen render the following services/ functions:

1. Middlemen are the furnishers of valuable information to the producers about consumer behaviour,
the changes in tastes and fashions, etc.

2. Middlemen allow the manufacturers to concentrate on production only and relieve them from the
botheration of marketing.

3. Middlemen render financial help to manufacturers.

4. They make available the goods according to the consumers’ needs, fashion, tastes, etc.

5. Middlemen are an important link between the producers and consumers.

Thus we can very safely say that the middlemen play a very vital role in the business activities and to
maintain the regular chain of supply of goods from the manufacturers to the ultimate consumers, the
existence of the middlemen is very essential.

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