How DMS Can Improve Inventory Management

Analysts at Absolute Reports predict that by 2027, the market capitalization of DMS is expected to reach $14.3 billion, with a Compound Annual Growth Rate (CAGR) of 16.1% for 2021-2027.

This indicates a growing demand for Distribution Management Software (DMS) in proportion to increased competition in the industry and the emergence of trends dependent on the digital aspects of business, both in logistics and beyond.

In this week's edition of the newsletter, I'd like to highlight how will DMS improve inventory management processes ??

DMS platforms and their inventory management capabilities are trusted by thousands of businesses worldwide. Data Bridge Market Research analysts predict that the capitalization of IMS will increase to $2.56 billion by 2029, with a CAGR of 6.62%.

This indicates the demand for such systems and their exceptional benefit for companies focusing on business digitization and the integration of advanced IT solutions. This demand is entirely justified by the ROI, which manifests in financial and operational plans.

Let's now consider the typical advantages that DMS and related platforms provide for businesses, especially for inventory managers and company owners.

Simple Inventory Control

DMS ecosystem software combines all distribution points with 3PL platforms, manufacturers, and intermediaries, providing comprehensive information on product stocks to all participants in business processes.

This allows for more detailed planning of further supplies, liquidity calculation for the product, and forecasting demand.

In financial terms, this means reducing losses on product disposal or returns and increasing profitability by expanding production volumes and turnover.

Production Monitoring System

By integrating DMS and modules into the platform, you can acquire more functions that can greatly simplify staff routines and automate certain processes. This includes:

• quality control,
• products' freshness,
• expiry dates.

Especially for food and raw materials.

Products are added to the system through RFID tags, where their expiry dates, manufacturing dates, and other relevant information are recorded. The system notifies responsible people about expiring products, product obsolescence, and more at regular intervals.

This increases the availability of goods and improves turnover, resulting in positive effects on each segment of the business.

Tracking Goods Movement

GPS systems in vehicles, POS terminals with RFID readers, and other technologies let you track where and how much goods are being sold. In addition to direct control, such a system creates unique analytical opportunities for business analytics (BA) companies.

The latter, for example, can monitor demand at sales points in real time and incorporate this information into further planning.

Therefore, the rate at which products are sold increases, the amount of unsold inventory reduces, and all members of the business chain earn more revenue.

Synchronization of Working Environments for All Participants in Strategic Distribution Management

To gain better control over product distribution and suppliers' capabilities, it is essential to integrate DMS and matching modules across the entire company. This leads to efficient mapping out of the strategic growth of businesses and their short-term projects, income, requests, and more.

Additionally, such platforms provide the opportunity to automate a significant portion of processes, including order creation and processing, as well as cashless transactions.

Optimizing Supply Chain and Distribution Algorithms

Supply chains and product distribution can be optimized through DMS and related modules. The universal system covers all distribution stages, providing access to them for each participant in commercial and logistical processes.

This simplifies supply control, improves analytical capabilities and forecasting, and increases the profitability of operations.

This is another advantage of DMS and a compelling argument for implementing the system in business if you need to optimize distribution processes and improve their efficiency.?

Manage Inventories in Detail

Every party involved in commercial and logistical processes has a designated stock of tangible goods and locations for their temporary or permanent keeping.

To ensure proper management of all monitoring operations, it is crucial to digitize the records of products, transportation, equipment, and other relevant aspects.

DMS is partially designed to solve this task.

With additional modules, its potential significantly increases, allowing it to cover a large part of the business's needs and even partially perform the role of a Warehouse Management System (WMS).

Strategic Demand Analytics

Only by knowing the volumes of product or goods circulation can you calculate the business's profitability and plan its further development.

The DMS system has excellent analysis capabilities and can gather information on sales, supply, and product updates. This information lets you evaluate the strategy's success and forecast demand in the long and short term.

Thus, with DMS, you get exceptional opportunities for business concept planning, risk management, sales promotion, etc.

Forecasting Market Changes

Business activities are influenced by many factors, most of which are impossible to control. This primarily concerns epidemics and wars, which create problems for logistical chains and lead to sharp changes in supply and demand. However, you can consider economic and political factors and adapt strategies to minimize risks for your company.

DMS and AI-based DFS collect data from all available sources, analyze them, and provide generated forecasts to company managers.

You can and should use this information to have the opportunity to react to changes promptly, adapt the business strategy, and emerge as a winner.

Consumer-Centric Approach

Know your target audience with DMS capabilities! Analyze demand for products by integrating Point of Sale (POS) and other technologies at the last point of distribution in the chain. The obtained information is useful for businesses to personalize offers to consumers and adapt commercial and logistical processes.

Deliver the optimal volume of products to sales points on time, provide an excellent UX, and increase business performance with DMS and its specialized modules.

Integration with Additional Modules and Systems

ERP, WMS, CRM, ROS, OMS, and numerous other corporate digital products can be synchronized with DMS.

This provides several advantages for businesses, such as:

• Access to databases of all process participants.
• Fast exchange of information.
• No delays between receiving and processing requests.
• Organic organization of operational operations.
• Control over the circulation and delivery of goods.

In summary, the company gains new articles of savings, optimization of internal processes, and their cost.

Automated Document Workflow

In addition to sales distribution management, the platform can be expanded through the use of EDMS, providing the opportunity to automate companies' document workflow.

In practice, this will:

• Reduce expenses on paper and stationery.
• Streamline the workforce by reducing intermediaries in decision-making.
• Expedite the processing of applications.
• Unite multiple employees in a single work environment.
• Minimize the impact of the human factor and errors in documents.

Powerful Communication Component

Since DMS brings together all participants in logistics and business processes, it enables continuous dialogue. This is beneficial for coordinating operations and settlements and addressing organizational issues, challenges, and risk mitigation.

The system also provides the ability to work simultaneously with documents, branched access to various types of information, and process management systems.

Summing Up

Integrating DMS into the digital infrastructure of a business provides benefits beyond managing inventory.

It simplifies multiple company processes by providing powerful functionality, supporting AI innovations, and automating tasks.

I believe that investing in the development and integration of DMS yields numerous benefits and new opportunities for businesses.