Implementing Next-gen DMS in FMCG Industry

Improving distribution management efficiency by up to 70% with Next-gen DMS

According to a recent study, businesses that applied DealerX – Next-gen DMS (a new generation Distribution Management System) have improved their distribution management efficiency by up to 70%. DealerX not only optimizes purchasing and distribution processes but also integrates a loyalty program, helping companies strengthen their relationships with distributors and retailers. Additionally, with real-time data and process automation capabilities, DealerX has proven effective in reducing errors and enhancing flexibility in the supply chain, enabling businesses to seize opportunities and achieve sustainable growth.

Implementing DealerX in FMCG Industry

Below is a case study of a FMCG company that successfully implemented DealerX from Estuary to improve business performance effectively.

I. Company Background

1. Industry: Fast-Moving Consumer Goods (FMCG) manufacturing and distribution.
2. Network: Includes distributors and multi-level retailers across the country.
3. Challenges: The company was managing its distribution network with an outdated system and manual processes.

II. Challenges to be addressed

1. Lack of long-term collaboration incentives: The absence of support, incentives, or loyalty programs for distributors resulted in a lack of motivation for long-term engagement with the brand, negatively impacting long-term collaboration.
2. Inefficient inventory management: Distributors often faced stockouts or overstock situations due to the inability to monitor inventory in real-time.
3. Inaccurate performance metrics: The company lacked real-time data on distributor performance and sales trends, making it difficult to optimize operations or design target product sales strategies.
4. Limited sales visibility: The company struggled to track product movement and sales across different distribution levels, leading to inaccurate demand forecasting.

III. Solution: Implementing DealerX

To address these challenges, the company decided to deploy DealerX, a platform designed to manage and engage distributors. This system optimizes distribution processes, improves communication through loyalty programs, and provides real-time insights into sales and inventory.

Key Features of the System

1. Loyalty Program
   • For distributors: They receive incentives, discounts, or benefits by participating in the program, creating long-term motivation to collaborate and strengthen ties with the brand.
   • For the brand: Enhances interaction and builds sustainable relationships with distributors, differentiating the company from competitors and helping maintain and expand market share.
2. Real-Time Data Access
   • For distributors: They can track inventory levels, orders, and market demand in real-time, allowing optimal stock management and preventing stockouts or excess inventory.
   • For the brand: The brand can directly monitor distributor operations, including sales, inventory, and retail outlets, improving demand forecasting and more accurate production planning.
3. Smart Analysis and Demand Forecasting
   • For distributors: Based on historical data and market trends, the system helps distributors forecast upcoming demand, optimizing inventory and improving distribution efficiency, reducing costs, and maximizing profits.
   • For the brand: Brands can use intelligent analysis from the system to identify high-demand areas and times, launching targeted marketing and promotional campaigns to optimize market access strategies.

IV. Results

The deployment of DealerX resulted in significant improvements in the company's distribution operations in the FMCG sector:

1. Enhanced long-term collaboration and distributor engagement: Distributors' engagement with the brand increased by 35% thanks to loyalty programs, incentives, and rewards.
2. Improved inventory management and reduced waste: Distributors saw a 25% improvement in inventory management efficiency and a 20% reduction in waste due to overstock or stockouts, leading to significant revenue increases. Moreover, brands were able to reduce production costs by up to 15% through more accurate production adjustments based on system data.
3. Improved distribution speed and accuracy: Order processing and distribution speeds increased by 30%, with errors in the process reduced by 20%, allowing distributors to serve customers faster and more efficiently. For the company, product market entry speed increased by 20%, leading to higher sales and better support for marketing campaigns, improving customer satisfaction.
4. Enhanced sales visibility: The company could monitor real-time sales, allowing for adjustments to marketing and promotional strategies, increasing the response rate to customer demand by 25%.

By adopting DealerX, the FMCG company significantly improved the efficiency, transparency, and flexibility of its distribution network. This system enabled the company to better control its supply chain, strengthen relationships with distributors, and increase overall profitability.

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