In these difficult times, it is very difficult for companies to manage profit margins. Due to poor inventory management systems, many companies have failed and collapsed. An effective inventory management system is essential for maintaining and managing inventory. It ensures success with ease. This is where sales and distribution work together for business. To get a clearer understanding of the situation, let’s find out how sales and distribution are managed.
Sales Management System
The sales management system deals with sales. Inventory sales management manages your sales records and helps you to understand your profit margin. These reports provide you information about your sales and where these sales were made following the sales and distribution process.
Distribution management deals with the distribution process of goods from suppliers to point of sale. It includes numerous activities such as inventory, logistics, warehouse, etc. Distributors make the products and the sales team sell those products. Hence, both departments work together for the business.
Sales and Distribution Relation
The relationship between sales and distribution is quite abstract. Not many people look at these two as a team. However, advanced studies show that these two are interconnected. The relationships between sales and distribution can affect a business if they do not complement each other well. Although there is a big difference in their functionality and hierarchy, together they complete the business process.
How they work together
Distributors often have sales managers for their organizations in the business. The main purpose of assigning a sales manager is to guide their distribution partner in daily sales activities. Without their guidance, it is very difficult for the distributors to run the business according to the sales requirements.
It is the responsibility of the distributor management to ensure the availability of the products. Without their reports and strategy, it is hard for the sales team to manage a smooth sales process.
To achieve sales goals distribution team is necessary. No strategy or plan made by the sales team can be executed without the distribution team. Sales managers represent the company in the market. Whatever work and strategies are made by the distributors for the business sales managers implement them.
Sales and distribution teams are the backbone of the company. They both have an eye on market trends, business behavior, competitions, and potential leads. They both face the challenges together to bring the business. They make the decisions together and direct the other teams to grow the business.
Increase Sales and distribution management efficiency
An efficient inventory management system can help you to increase the efficiency level of your sales and distribution teams. It provides your sales team with all the sales reports to information about sales activities. By using the sales team can make plans easily. This somehow helps your distribution team as well. They can execute sales plans by keeping an eye on inventory. A reliable inventory management system not only provides you with sales and inventory details but also eradicate other complexities. It reduces the chances of theft and damage. It shows the inventory levels for the distribution team to maintain the level so that the sales team can work with confidence. From packing to delivery each step is recorded in the system so both teams can track the order easily. Each department must be aware of the inventory level and existing stock in the warehouse to play its role efficiently. This way sales and distribution departments can work hand in hand.
The relationship between distribution and sales is unique and sometimes complicated to understand. Still, both departments are necessary for each other. Without distribution, sales cannot execute the plans and without sales, distribution has no plan to execute. To enhance the quality of work a company can use an inventory management system. This system is a connection between the two. What is selling and what is not? Which product is in demand and which is not? An inventory management system answers all these questions. To grow your business, you need a system to connect your two major teams.