A distributor sits between a company and hundreds of retailers. Orders arrive from many sources, goods move through warehouses and vans, schemes change every month and claims go back to the company. A distributor management system, often shortened to DMS, brings these parts together. This guide explains what it covers.
Who wrote this guide
The EZ Solutions team wrote this guide. We build BillDo, billing software and a field sales app for distributors and wholesalers. For the billing side, see distributor billing software.
What does a distributor management system cover?
| Area | What it handles |
|---|---|
| Orders | From salesmen and retailers, turned into bills |
| Billing | GST invoices, credit notes, delivery challans |
| Stock | Warehouses, transfers, batches and expiry |
| Schemes | Company offers applied on the bill |
| Dispatch | Load sheets, delivery lists, undelivered goods |
| Payments | Collections, cheques, cash hand-over |
| Claims | Scheme and return claims to the company |
| Accounts | Export to Tally for the accountant |
How do orders flow?
A salesman takes an order on the phone during a beat visit, or a retailer sends one through a link. The order becomes a bill, the warehouse prepares the goods and the delivery list goes to the van. The payment then settles the bill. Nobody types the same order twice.
How are schemes handled?
Company schemes change often: free quantity, percentage off from a quantity, or an amount off per unit. BillDo applies the best scheme on each bill and records its cost, so the distributor can see what each scheme cost and raise claims with the company.
What about warehouses and dispatch?
Stock is tracked by warehouse and by every movement. Dispatch needs a load sheet and a delivery list, and goods that are not delivered return to stock with a reason. Many orders can be billed together when a van is loaded.
What does the field team need?
Salesmen need their beat, their shops and the order form on the phone. Owners need to see visits, missed shops and collections. The related guide on the salesman order app goes deeper.
How does it end in the books?
At month end, the accountant receives the sales, purchase and payment entries as Tally XML. The DMS stays the working tool; Tally stays the book of record.
What mistakes slow a rollout?
The usual mistake is switching everything on at once. Salesmen, retailers, warehouses and claims all change on the same day, and nobody knows which part is failing. A better path is to start with billing and stock, then add salesmen on one beat, then schemes and claims.
How should data be prepared?
A clean start matters more than a quick one. Parties need correct names, states and GST numbers. Items need units, tax rates and opening stock per warehouse. Price levels should be set before the first bill. Importing from Excel saves typing, but the sheet should be checked before it is loaded.
How is success measured?
Look for fewer re-typed orders, bills that go out the same day, a shorter time to match payments to bills, fewer stock differences between the register and the shelf, and claims raised on time. If these improve in the first quarter, the system is carrying real work.
What does the owner see each morning?
A good dashboard shows yesterday’s sales, collections, orders waiting for dispatch, stock below its minimum and parties that crossed their credit limit. With these five views, the owner starts the day with decisions instead of questions to staff.
How are returns and damaged goods handled?
Returns need a reason, the original bill and a decision on where the goods go: back to stock, to a damaged-goods area or to the company. Recording each reason lets the distributor raise claims on time and spot products or routes that return often.
Is it right for every distributor?
A small trade with one counter may need only billing. A distributor with salesmen, several warehouses and company schemes gains most. See the BillDo page for the modules.
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