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Better distribution management for FMCGs

Released at: 11:22, 30/11/2015

Better distribution management for FMCGs

New solution offers FMCG companies a better method of monitoring and managing their distribution efforts.

by Thu Hoang

Vietnamese businesses are oblivious to the pressure to come from the greater competitiveness the TPP and the ASEAN Economic Community (AEC) will bring. For enterprises in fast-moving consumer goods (FMCG), fierce competition is found in each promotional campaign and each distribution channel, Mr. Peter Pham, CEO of DMSpro, told the DMSpro Seminar 2015 - Innovation in Distribution and Sales Management System - Ultimate Solution, Optimize Performance held last week in Hanoi?.

Since 2000, 52 per cent of the names on the Fortune 500 list have been replaced, as these companies have faced fierce competition from newcomers who have taken advantage of technologies in business management and operations. “Technology, systems, and processes are three key pillars to serve, win, and retain customer in such a fiercely competitive context,” Mr. Pham said.

Enterprises, especially those in FMCG, face many challenges in operating and managing their distribution management system (DMS). According to Mr. Nguyen Khai Tuyen, an expert at DMSpro who has been involved in and successfully finished DMS projects for Unilever Vietnam, Vinamilk, Samsung, P&G, and others, these concerns includes how to improve sales activities, how to check and manage outlets and channels, how to establish the size of a distributor’s inventory, how to handle advanced promotion items after finishing promotion campaigns, how to ensure POSM (Point Of Sales Material) is deployed at the right time and the right place, and how to reduce efforts made in reporting and administrative tasks.

The DMS provided by DMSPro can resolve all of these concerns, according to Mr. Tuyen. FMCG manufactures would be able to improve the integrity and discipline of sales activities, maximize sales effectiveness, gain full visibility, control displays at outlets and stores anytime and everywhere, and get transparent real-time data, from a system that is easy to maintain and upgrade.

According to Ms. Nguyen Thi Thanh Huyen, National Sales Operations Director at TH Milk, the company chose DMSpro’s solution after experiencing difficulties and obstacles such as the language barrier and the high costs of cooperating with foreign partners. “The solution has provided us with an effective and comprehensive distribution management method,” Ms. Huyen said. “The data provided is also closer to the actual situation.” It’s not easy to adapt the new management solution, however. Enterprises may have to face the fact that many employees will leave during the early stages of applying the new solution.

Mr. Nguyen Quang Phi Tin, National Sales Director at Nhat Nhat Pharma, said the TPP has created pressure for local pharmaceutical manufacturers in general and Nhat Nhat Pharma in particular, as tariffs on pharmaceuticals imported into Vietnam will be cut from 2.5 per cent to 0 per cent. “The DMS provided by DMSpro helps support sales activities and has improved the operations and management at the company,” he said.

Founded in 2011 in Vietnam, DMSpro is a cloud-based pioneer in DMS. Its team of experts has experience in management system projects at P&G, Unilever, Vinamilk, Johnson & Johnson, and the Tan Hiep Phat Group.

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