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For manufacturers and consumer brands, selling a product is only one part of the business.
The real challenge is managing the entire distribution and retail network.
A typical channel may involve:
MANUFACTURER → SUPER STOCKIST → DISTRIBUTOR → DEALER → RETAILER → CUSTOMER
At every level, the business needs visibility into:
When these operations are managed through Excel, phone calls and WhatsApp, manufacturers can lose visibility of what is actually happening in the market.
A DMS Retail Channel Management Software creates a structured digital connection between the company, distributors, dealers, sales representatives and retailers.
Digify Soft Solutions can develop configurable DMS and business management solutions designed around the specific requirements of manufacturers, distributors and retail networks.
DMS stands for Distributor Management System.
A DMS is software designed to manage the relationship and transactions between a company and its distribution channel.
Depending on the business model, it can manage:
The objective is to create end-to-end channel visibility.
Consider a company selling products through 50 distributors.
Each distributor may supply 200 retailers.
That means the company potentially has visibility challenges across 10,000 retail outlets.
Management needs answers to questions such as:
A DMS provides a centralised system for answering these questions.
A typical distribution workflow can be:
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↓
↓
↓
↓
↓
↓
↓
↓
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The DMS can capture information throughout this chain.
Maintain complete distributor profiles.
Track:
Management gets a 360-degree view of each distributor.
Dealers can be managed separately from distributors.
The system can track:
Retailer management is critical for understanding the last mile.
Track:
This creates a digital retailer database.
Field sales teams can use the system through a mobile application.
They can:
This converts field activity into measurable data.
Primary sales represent sales from the company to its channel partners.
The DMS can manage:
Company → Distributor
Track:
Secondary sales represent movement from distributors/dealers to retailers.
This is extremely important for manufacturers.
The company can monitor:
Distributor → Retailer
and analyse actual market movement rather than relying only on stock dispatched from the factory.
Depending on the business model and available data, the system can also capture movement from:
Retailer → Consumer
This can provide deeper market visibility.
Orders can be placed through:
Each order can move through:
Order → Approval → Stock Check → Allocation → Invoice → Dispatch → Delivery
Sales representatives can place orders directly from the field.
For example:
Retailer: ABC Stores
Product: Product A
Quantity: 20
Product B: 10
Product C: 5
The order can immediately reach the distributor or relevant order-processing team.
DMS can track inventory at different levels.
Factory / central warehouse stock.
Distributor inventory.
Dealer stock.
Retail-level stock where supported.
This creates better visibility across the channel.
Products may move between warehouses and channel partners.
The system can manage:
Warehouse → Distributor
Distributor → Dealer
Dealer → Retailer
and inter-location transfers where applicable.
Inventory ageing helps identify slow-moving stock.
For example:
| Age | Quantity |
|---|---|
| 0–30 Days | 8,500 |
| 31–60 Days | 4,200 |
| 61–90 Days | 2,100 |
| 90+ Days | 950 |
This helps management identify products requiring attention.
Targets can be defined for:
For example:
Monthly Target: ₹50 Lakhs
Achieved: ₹42 Lakhs
Achievement: 84%
Targets can also be created for individual products.
Example:
Product A → 10,000 units
Product B → 5,000 units
Product C → 3,000 units
This allows companies to push strategic products.
Channel schemes are an important component of FMCG, consumer goods and distribution businesses.
Examples:
The DMS can maintain configurable scheme rules.
Different channel partners may have different discount structures.
The system can support:
Approval workflows can be added where required.
Sales representatives can record collections from channel partners.
Track:
This gives finance and sales teams a common view.
Management can immediately identify:
Example:
| Ageing | Amount |
|---|---|
| Current | ₹18 L |
| 1–30 Days | ₹8 L |
| 31–60 Days | ₹4 L |
| 61–90 Days | ₹2 L |
| 90+ Days | ₹1 L |
Each distributor/dealer can have a configured credit limit.
For example:
Credit Limit: ₹10 Lakhs
Current Outstanding: ₹8.5 Lakhs
Available Credit: ₹1.5 Lakhs
The system can restrict or flag orders when credit thresholds are exceeded.
Returns can occur because of:
The system can manage:
Return Request → Approval → Pickup → Warehouse Receipt → Stock Adjustment → Credit
For businesses dealing with products having expiry dates, DMS can help track:
This can help identify products approaching expiry.
Products can be tracked by:
This is particularly useful for FMCG, pharmaceutical and other batch-based businesses.
Sales representatives can plan daily market visits.
For each visit, capture:
This creates a measurable field-sales process.
Where appropriate and lawfully configured, the mobile application can capture location information associated with field activities.
This can help management understand:
Management can identify:
This can help improve market coverage.
Sales representatives can register new retailers from the field.
Capture:
This accelerates channel expansion.
Channel partners can access their own portal.
They may be able to:
This reduces administrative calls to the company.
WhatsApp can support channel communication.
For example:
ORDER CONFIRMATION
"Your order has been successfully received."
DISPATCH
"Your order has been dispatched."
PAYMENT REMINDER
"Your outstanding payment is due."
SCHEME
"New scheme available for your account."
TARGET
"You are currently at 82% of your monthly target."
Historical sales data can be analysed to identify:
This can improve inventory planning.
A DMS dashboard can show:
| KPI | Purpose |
|---|---|
| Primary Sales | Company-to-channel sales |
| Secondary Sales | Channel-to-retail movement |
| Target Achievement | Sales performance |
| Active Retailers | Market coverage |
| Numeric Distribution | Outlet reach |
| Productive Calls | Field productivity |
| Order Conversion | Sales effectiveness |
| Average Order Value | Channel productivity |
| Stock Ageing | Inventory health |
| Fill Rate | Order fulfilment |
| Outstanding | Credit control |
| Collection Efficiency | Financial performance |
Manage distributors, retailers, schemes and secondary sales.
Manage distributors, stockists, batches and expiry.
Manage dealers, retailers, orders and inventory.
Manage channel sales and retailer networks.
Manage dealers, products, serial numbers and warranties.
Manage dealer sales, inventory, schemes and service.
Manage distributors, dealers, retailers and territory sales.
Manage distributors, dealers, garages and retailers.
| System | Primary Purpose |
|---|---|
| CRM | Customer & lead management |
| ERP | Internal business management |
| DMS | Distribution & channel management |
| POS | Retail billing |
| SFA | Sales force automation |
A comprehensive business platform can integrate these systems.
For example:
ERP + DMS + CRM + SFA + POS
This creates a connected business ecosystem.
Understand what is happening across distributors and retailers.
Digitise the order lifecycle.
Track inventory across multiple levels.
Monitor targets and field activity.
Track outstanding and payments.
Manage channel promotions systematically.
Track retailer visits and onboarding.
Reduce dependence on spreadsheets.
Use real-time dashboards and reports.
Digify Soft Solutions can develop a configurable DMS Retail Channel Management System according to the organisation's distribution structure.
Potential modules include:
The solution can be adapted to different channel structures and industries.
Want to digitise your distribution, dealership or retail channel operations?
This Diwali, explore selected business software packages from Digify Soft Solutions UNDER ₹10,000*.
✅ Distributor Management
✅ Dealer Management
✅ Retailer Management
✅ DMS
✅ CRM
✅ Order Management
✅ Inventory Management
✅ Sales Management
✅ WhatsApp Automation
✅ Business Process Automation
Contact Digify Soft Solutions to discuss your requirements and check the applicable Diwali offer.
*Offer pricing, features, implementation scope, integrations and applicable terms may vary according to the selected solution and business requirements.
DMS stands for Distributor Management System. It is software used to manage distributors, dealers, retailers, orders, inventory, sales, schemes, collections and channel operations.
CRM primarily focuses on customer and sales relationships, while DMS focuses specifically on distribution-channel operations.
Yes. Secondary sales can be captured and analysed where the required transaction data is available.
Yes. Distributor portals, mobile applications or other configured channels can be used for order placement.
Yes. Retailer profiles, orders, visits, sales and activity can be managed.
Yes. Configurable scheme and incentive rules can be incorporated.
Yes. Distributor inventory can be tracked by product, batch, location and other required dimensions.
Yes. Field sales teams can use mobile applications for retailer visits, orders, collections and market activities.
Yes. WhatsApp can be configured for appropriate order updates, payment reminders, scheme communication and other notifications.
A strong distribution network is one of the biggest assets for a manufacturer or consumer brand.
However, without real-time visibility into distributors, dealers, retailers, sales teams, inventory and market movement, businesses may struggle to manage that network effectively.
A DMS Retail Channel Management Software connects the different levels of the distribution chain and provides management with better visibility.
From:
MANUFACTURER → DISTRIBUTOR → DEALER → RETAILER → CUSTOMER
the organisation can track orders, stock, sales, schemes, targets, collections and performance through one digital platform.
Talk to Digify Soft Solutions about a customised DMS Retail Channel Management Software solution.
ASK ABOUT OUR BUSINESS SOFTWARE PACKAGES UNDER ₹10,000*.