Why Should You Digitalize your Distribution? Where to Start?


Table of Contents

Why Should You Digitalize your Distribution? Where to Start?

Principals and distributors have to ensure the right product is delivered to the right customers with the most optimized route. It’s been proven that companies who invest in digitization in their distribution system have been able to strategically plan out their business as well as taking significant cost out of their operations while increasing profits to gain an advantage over the competition.

So, why should you digitalize your distribution process and how?

1. To expand store coverage

According to Advotics’ study, digitalizing company salesman’s reports can expand salesman’s coverage by up to 40% and increase sales order requests by up to 53%.

Mobile applications such as the Workforce Management System can increase the efficiency of salesman visits by digitizing collection and submission of activity records, such as sales order, store stock level check, price monitoring, payment collection, etc. If salesmen can speed up their visits, they can visit more stores per day thus increasing the chance of higher sales orders.

Read more: Is the Salesman Visiting the Shop Still Needed?

2. To increase order fulfillment rate

Management must always strive for the most optimal order fulfillment strategy. The delivery of products to fulfill market demand is very important to grow and increase company profits. Manually counting stock, managing labor and orders can be complex and time-consuming. Any delays and mistakes on the ground can damage the company’s reputation, not to mention losses in terms of returns or refunds.

An integrated real-time distribution management system can accelerate order processing, monitor real-time inventory stock levels, and expedite shipping. Warehouse operators and management can update and revise any information anytime and anywhere. Not only does it create transparency of stock level in every warehouse, it also helps distributors in determining which products are Hot SKUs and other variables that would optimize market demand forecasts.

Read more: What is Order Fulfillment Rate? How can You Improve It?

3. To improve staff performance

Performance reviews are conducted to ensure Principal’s business objectives are aligned with the target of its distribution network. It has been proven by a study by McKinsey that companies with better financial performance conduct performance review more frequently than others, with a focus on return on investment, sales performance, and outlet coverage.

Advotics understand the importance of distributor KPI metrics so our system has been able to take a massive amount of data obtained from various sources within the company and display it in easy-to-understand dashboard to identify if there is a delay or a drastic change in company performance. Distributors or sales groups can also see their performance toward the preset target at any time.

Read more: Why is Distribution Performance Management Important?

With Advotics’ Distribution Management System, distribution companies can now leverage technology that empowers them, improving everything from the sales order process to relationships with retailers and customers.

Book 1on1 meeting with us today!

Want more insights? Subscribe to our newsletter 🙂
*this article is originally posted on our September newsletter.
Share :