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  • Writer's pictureSam Note

DMS is yesterday´s Distribution Technology solution

Distributor management systems (DMS) of consumer goods companies have traditionally been built in an era of automation, focusing on digitizing existing basic processes, such as inventory management and order fulfillment. However, as the world of e-commerce and digital technologies continues to evolve, it has become increasingly clear that these systems need to be updated in order to keep pace with the changing needs of businesses and consumers.


One of the key ways that DMS need to be updated is by incorporating predictive intelligence. Predictive intelligence can help businesses to better understand consumer behavior and preferences, and to anticipate future trends. This can be used to improve the efficiency of inventory management and order fulfillment, as well as to identify new opportunities for growth.



Another way that DMS need to be updated is by catering to new capabilities, such as partnerships, collaboration, and co-creation with the ecosystem. As businesses look to expand their reach and tap into new markets, they need to be able to work closely with partners and suppliers in order to achieve their goals. This means that DMS need to be designed in a way that facilitates collaboration and allows businesses to easily share data and information with their partners.


One example of a company that has started to incorporate these new capabilities into its DMS is Procter & Gamble. The company has implemented a DMS that allows them to work closely with their partners and suppliers in order to improve the efficiency of their supply chain. The system also allows them to share data and insights with their partners, which enables them to better understand consumer behavior and anticipate future trends.


However, despite the benefits of these new capabilities, many consumer goods companies still struggle to update their DMS. This is often because they are focused on maintaining the existing systems that they have in place, rather than on investing in new technologies and capabilities. Additionally, many companies may be hesitant to invest in new systems because they are unsure of the return on investment that they will see.


In conclusion, distributor management systems of consumer goods companies need to be updated in order to keep pace with the changing needs of businesses and consumers. This means incorporating predictive intelligence, catering to new capabilities such as partnerships, collaboration, and co-creation with the ecosystem. While this may require an investment of time and resources, it can ultimately help businesses to improve the efficiency of their supply chain, identify new opportunities for growth, and better understand consumer behavior. Companies should take the step to incorporate these new capabilities, to stay competitive and meet the demands of their consumers.

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