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The Importance of Effective Inventory Distribution Software for Your Business

True, inventory is the lifeblood of any distribution business. But how much inventory should a distributor carry at any point in time? That could have a measurable impact on a distribution business in terms of lost revenue as well as wasted time and effort. It is certainly tempting to fill your warehouse with excess inventory to avoid running out of items. 


What if these go unsold for a long time, start to gather dust, eventually go bad, and have to be written off? Dead inventory represents a missed sales opportunity and tends to hemorrhage revenues of the distributor and everyone else in the supply chain. Just think of all the costs – production, logistics, storage – that have gone into unused inventory. An efficient distributor management system could have easily sorted all of this! 


Overstocking not only eats away your margins but also results in frustrated retail customers since the store is filled with products they are less than keen about! At the same time, what they need most is out of stock! Overstocking and out-of-stock scenarios sound like polar opposites, but in both situations, the customers feel they are not valued high enough by the brand or the retailer. This stirs up negative customer emotions against the brand and retailer, and, this is sure to have a rub-off effect on the distributor’s bottom lines as well in some time. 


The real culprit behind overstocking and understocking is the inefficiency of hobbling the distributor’s product supply lines and the delivery lines running downstream to the retailer. The result is wasted labor, duplicated efforts, and frequently missed deadlines. No matter the size of your distribution business, an inventory distribution management software – like Logo J-Platform DMS can easily “straighten out” twisted supply chains and keep them performing at peak efficiency.   


Essentially, Logo J-Platform DMS is an application running on a single server or a group of servers owned or operated by a distribution business in this case. Data gathered from across your supply chain is collected, stored, and centrally maintained, but accessible to all based on need. With this, all your business functions have a clear view of data and activities as goods travel from and to your distribution business. Now, cut back to what was happening in the era prior to Logo J-Platform DMS implementation. There is a good chance that data was lying in the form of isolated islands in specific departments. 


The huge downside here is that the rest of the distributor organization is unable to easily access all this data. The chances of data errors and inconsistency are quite high. Moreover, in a siloed distributor organization, various departments might use standalone data processing and storage systems, sending IT costs soaring. Logo J-Platform DMS, an inventory distribution software, cuts back unproductive spending and ensures your internal business users as well as external supply chain participants are in the loop about what is happening in the supply chain. 


As they say – “Data is the new oil.” Much like crude petroleum, data, once refined, will yield rich insights that can help your business stay more profitable while keeping down costs. Logo J-Platform DMS displays all the data measures in one place in an easily understandable dashboard format, further enriched with lucid graphs, charts, and tables. 

Using accurate and ready-to-use data gathered from across the supply chain, you can make more informed predictions about customers’ appetites for specific products and maintain demand/supply equilibrium. This means your retail stores will have just the inventory needed to meet customer orders, neither more nor less. 


Meanwhile, your sales team can develop a healthier sales pipeline, make better sales forecasts, and net more deals, leveraging insights derived from the Logo J-Platform DMS. The distributor order management system also takes care of your sales reps’ incentive management. 


To sum up, Logo J-Platform distribution management software can shrink the time it takes for you to process a customer order, fulfill the same, and realize payment.

To know more, call us at +91 8433733535 / +91 9004403222 / or email us at sales@logoinfosoft.com
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