DMS Software: Launching Pad For Distribution Management & Sales Optimization In 4.0

Mechanical production through steam power marked the first Industrial Revolution (Industry 1.0); Industry 2.0 followed with mass production line thanks to electricity; and Industry 3.0 brought a touch of “magic” when manufacturing was automated by electronics and information technology. Then, in recent years, Industry 4.0 has been taking the “spotlight” all over the globe. So what are the practical applications of 4.0? How are “smart” management models on 4.0 platforms in general, and DMS  (Distribution Management System) software technology in particular transforming the way we conduct business? Let’s join DMSpro in analyzing this topic via the article below.

Four industrial reforms have revolutionized the world. Source: DMSpro

Substantial impacts of 4.0 around the world

Coming into existence in 2013, Industry 4.0 or Fourth Industrial Revolution is considered a matter of course in the current digital age, since foremost technological achievements such as Cloud Computing, Mobile Devices, Sensors, Artificial Intelligence (AI), Big Data, Internet of Things (IoT), etc. have laid unprecedented foundations for mankind to “digitalize” all manufacturing and business activities, replacing repetitive and manual tasks, limiting human intervention in the system while still producing quick and highly accurate outcomes.

A number of industry professionals commented that 4.0 has seemingly redrawn the traditional boundaries between physics – biology – information technology. At present, almost every piece of information may be computerized; isolate and detached systems are easily integrated; devices can “communicate” with each other and automatically analyze a colossal amount of data based on predefined programmes/software. This emerges as a favorable condition for enterprises to go about “technologizing” their manufacturing processes, upgrading product functionality, applying smart distribution management models in order to cut down on expenses, reduce errors, optimize operational efficiency and ultimately improve the bottom line. On the other hand, when 4.0 starts to alter production and business management methods radically, enterprises that are slow to research and implement technology will face the risks of lagging behind in the fiercely competitive market.

According to Deputy Prime Minister Vu Duc Dam, the application of IT ranks high among factors stimulating economic growth for APEC countries (Asia-Pacific Economic Cooperation) compared to global average, and such trend will continue to rise in the foreseeable future. Many analyses have also shown that 4.0 is no longer limited to the U.S., Germany or Europe, but it has already permeated to Asia at an accelerating speed. Obviously, Vietnam cannot exclude itself from the momentum.

Vietnamese enterprises keeping their radar tuned for 4.0 

Assessing the importance of 4.0 to economic and social development, Prime Minster Nguyen Xuan Phuc has directed Ministries and Departments to work on projects to enhance IT infrastructure, as well as to encourage and support businesses to invest in technology from now until 2020.

4.0 opens up several smart management models for enterprises. Source: DMSpro

The potential for Vietnam is that we can access 4.0 by learning from and adapting the digital and technological platforms to apply in various management areas. For example, recently OneNet Company has begun to take advantage of Cognitive Computing by IBM (USA) for their hospital management software which is capable of swiftly analyzing a massive number of medical documents, thereby giving diagnoses and appropriate prescriptions. 4.0 in agriculture has been spearheaded by corporations like TH Group, as TH True Milk has proceeded to install computer chips (AfiTag) in order to monitor milk production capacity and health issues of the dairy cows right from the central system, instead of having to observe tens of thousands of them with the naked eye. Or the Massive Open Online Courses (MOOCs) model combined with Google Glass technology by a Vietnamese startup – Topica Edtech Group allowed hundreds of English learners in Hanoi to experience a speech by U.S. President Donald Trump, and to interact visually with their lecturer as well as other passers-by in front of the White House.

DMS software on 4.0 basis: “Right-hand man” for manufacturers & distributors

Manufacturing is regarded as a driving force of the Vietnamese economy. Nevertheless, manufacturers and distributors usually face challenges in effectively managing the distribution channel, managing sales activities, boosting the sales force’ performance, undertaking and evaluating display programs, promotions, POSMs, etc. at the outlets. They have been wasting considerable time and resources, burying themselves in piles of lagging and inaccurate reports which render it difficult to make the right business decisions.

On an upbeat note, with DMS (Distribution Management System) software on cloud computing (Cloud DMS), manufacturing and distributing businesses in 4.0 era now have the opportunity to control 100% of data throughout the supply chain. Via a smart DMS application on mobile devices, the entire sales process will be automated, helping sales teams remove manual tasks, decrease errors, and share sales data instantly with the headquarter. Just residing in the office, management can visually grasp the market pulse 24/7 because each product and brand’s revenue, inventory levels, coverage, competitors’ information, trade marketing, display and promotion programs’ effectiveness etc. are “digitalized” and sent back to the central system in real time.

Distribution Management System (DMS) software on 4.0 platform. Source: DMSpro

Selecting DMS software by DMSpro, the pioneer to provide DMS solutions on cloud computing (Cloud DMS) in Vietnam, Tan Hiep Phat Beverage Group deployed it successfully to more than 230 distributors and 1.600 sales representatives within only 4 months, and the DMS system processed over 54.000 transactions per day. A large distributor of P&G commented that they raised revenue by 20% thanks to DMS. Additionally, right in the second month of using DMS, all salesmen from a distributor of Moc Chau Milk Company achieved 100% of sales targets, with one staff accomplishing as high as 123%.

The visible trend is that DMS integrated with cloud computing technology, one of the prominent aspects of 4.0 has increasingly become a strategic associate of manufacturers and distributors in Vietnam.

Conclusion

Beyond the potential benefits in production and trading, 4.0 also poses certain challenges, such as domestic companies constantly having to stay updated on technological trends, or the quality of labor requiring an upgrade to satisfy high technical requirements. As a result, so as to confidently “ride the 4.0 waves”, corporate leaders must be willing to adapt and take the initiative to formulate short- and long-term Information Technology plans, in which the human factor cannot be excluded. It should be borne in mind that 4.0 in general, or DMS in particular is simply a tool; the make-or-break point depends on how each enterprise makes wise use of said tool in the context of their objectives and practical circumstances.

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