IDM Intelligent Distribution Management

IDM white paper

 
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Foreword
What is ERRY IDM
IDM value embodiment
System functional modules
System features
Product development

 
Foreword
  The past few years has witnessed dramatic changes from competitive environment to management modes along with the same dramatic development in network technology. Main manifestations are:
  • From individual enterprise competition to supply chain competition - Competition among enterprises has evolved to competition among supply chains, management sphere for enterprise extends beyond internal resources to include their suppliers and customers.
  • From traditional people,capital and resource competition to knowledge, information competition - Knowledge and information has increasing became important strategic resources for enterprises. Whether an enterprises can obtain maximum information in shortest time is key to its sustained development.
  • From product-centered to customer-centered - in traditional industrial time, enterprises focus on satisfying production needs by concentrating internal resources and product-oriented operation management is at the core of enterprise management. In information economy, "Mass Marketing" no longer exists; Customers are demanding more and more varieties and diversity for products; Smaller batch and more variety production according to customer requirements is replacing larger batch and less variety production;Enterprises is placing more and more emphasize on providing customized services to raise customer satisfaction. Customers are becoming the most important assets for enterprises and customer-centered business is the only direction for all businesses.

From the above changes, it is obvious that modern enterprise management requires that enterprise treat customers as the core of its business and realize the bi-directional information and data flow among manufacturers, distributors, retailer and end customers across its business cycle. It can be said that optimization of the future supply chain management will be one of the key elements for the success of manufacturers or suppliers. Enterprises can utilize new technologies like Internet to optimize distribution channels, integrate existing resources, adapting to market changes by shortest supply chain, fastest reaction and lowest distribution costs.

Currently, some large local manufacturers ( or suppliers) with distribution network across areas usually implement online order systems or ERP systems; but these solutions can only solve the problem of internal resource flow and can't perform real-time communication with agents and distributors all over the country. To better manage and further develop existing business channels and trade partnerships, enterprises need an Internet-based distribution system to closely connect with their agents and suppliers and to realize "win-win".

IDM is thus born:



What is ERRY IDM

 

IDM is an Internet-based online intelligent distribution system for purchasing, inventory, finance and decision support. Target customers of IDM are those manufacturers or distribution companies with distribution network across many localities. IDM can help these companies establish eBusiness application systems for their distribution system, providing a complete and practical intelligent business solution with fast reaction capability.

The dramatic growth of Internet has greatly expanded management capability and requirements for enterprises; It also runs into reality for enterprises to provide personalized manufacturing and services to customers. eBusiness has also brought about fundamental changes in operation thinking and manners of enterprises. Traditional ERP focus on manufacturing aspect of the company, emphasizing productivity increase and unit cost reduction. This kind of solutions which aim to integrate and control internal resources can't meet the needs of modern enterprises. At the forefront of Internet competition, enterprises will need to focus on market, network-based sales and customers, enhance customer loyalty and become the winner of MindShare economy. Therefore,the management thinking, application model and technical aspects of traditional ERP software are lagging behind; ERP is stepping out and will be replaced by new forces of which IDM is representative.

IDM, combining up-to-date enterprise management methodology and Internet technology, provides a brand new and lowest Total Cost of Ownership(TCO) solution for enterprises from management methodology, application model to technical aspects. With supply chain management at its core, IDM includes enterprise financial management system, sales and distribution system and decision support system; It suits the large, distributed enterprise and systematic management mode and can satisfy the needs for cross-geography and cross-country applications. Throughout IDM, Java and Internet-oriented database technology gives IDM high compatibility, security and extensibility and assure that IDM can integrate perfectly with eBusiness and OA systems and become the most effective and easy-to-use enterprise management tool in the Internet era. Advanced B/S (Browser/ server) architecture can extend enterprise applications beyond original office desk to computer, terminals and even telephones, PDA and IT home appliances anywhere in the world. It will provide stronger support for the development of enterprises by its more easy-to-use operation and better flexibility. IDM improves the communication among different parts of the supply chain and efficiency of supply chain, satisfy the needs of individualized services by enterprises and realizes the systematic management and distributed application for enterprises. It also provides capability and source power for enterprises to plan as a whole for all internal and external resources, raise customer satisfaction and meet the challenge of global competition and sustained development.

The following is the distribution network architecture; By installing IDM at distributors or subsidiary companies, manufacturers can cover the whole distribution network.

 
Positioning
Functional scope
ERP
Internal supply chain for large manufacturers; Enterprises are divided into several cooperative support sun-systems. Raw material souring,Production,Sales, Finance, Quality assurance,Human resource¡­¡­
CRM
Customer-centered; Dig up customer potential and promote sales through customer behavior and psychology analysis; Customer management, Contact management, Potential customer management, Marketing management, Telephone sales, Telephone marketing, Customer service ¡­¡­
IDM
Business management software with production and manufacturing companies and their distributors and subsidiary companies as target customers; Inventory and sales management are the core and business processes the clues. Purchase and replenishment management, Sales and distribution management, Inventory management, financial information management, basic information management, decision support management

 



IDM value embodiment

 

Reduce operation costs
Highly intelligent automatic inventory replenishment function which avoids situations of out of stock and overstock and reduce inventory costs; Timely and flowing information communication among sales channels reduces transaction costs; Strict credit check help users reduce bad debt costs and increase capital turnover, which in turn reduces capital costs;


Optimize resource allocation
By effective management of distribution network, can make reasonable use of resources of distribution network, reduce capital, human and resource occupation in distribution network, thereby optimizing the operation of material,capital and information flow.

Communicate with the market in time
For many suppliers, products sale are made through distribution channels instead of facing customers directly. They usually can not communicate with market in time and make timely reaction to market changes, resulting in market opportunity loss and other unnecessary losses. After implementing IDM, through centralized information management, suppliers can deliver product,sales and promotion information to market quickly and accurately, ensuring timely and flowing communication of the whole sale channel.


Increase distributor loyalty
After implementing IDM system, the distributors and suppliers will be in a close relationship, which improve fundamentally the means of communication, product sales and service models between suppliers, agents and distributors. The distributors will be more willing to promote the products to market together with suppliers to realize the benefits of win-win, thereby greatly increase distributor loyalty.


Realize standard management

Previously, suppliers, especial those having distribution network across many areas, usually need to spend a lot of people and resources managing the distribution channels, but still find it difficult to get hold of those disorderly and unsystematic information. IDM can make real-time data and information communication between suppliers and distributors, automatically realize a series of functions such as automatic purchasing order creation,, credit check for customers, etc. These help to realize standard management for distributors and save a great lot of human efforts and resource usage.

Raise customer service level

Improvement of out-of-stock situation can greatly enhance order fulfillment; Real time query of order processing and product delivery status can help users to spot problems in time to increase customer service level.

 



System functional modules

 


1¡¢Basic information management
Manage and maintain basic information such as product information, customer archives, supplier archives, distributor archives, user privileges.
£¨1£© Product information maintenance
Product basic information maintenance and price information maintenance.
£¨2£© Supplier information maintenance
View supplier basic information.
£¨3£© Distributor information maintenance
Distributor basic information maintenance.
£¨4£© Customer information maintenance
Customer (retailers¡¢outlets¡¢group purchasers) basic information maintenance.
£¨5£©Warehouse information maintenance
Set up main warehouse.

2¡¢Purchasing and replenishment management
Help buyers to control and complete whole purchasing process from automatically create purchasing orders, generate purchasing order suggestion to check arriving products, warehouse and create accounts payable. By effectively monitoring the execution of purchasing plan, the variation of purchasing cost and product delivery by suppliers, can help buyers to choose best suppliers and purchasing strategy, ensure high quality, high efficiency and low cost purchases, and let enterprises gain best purchasing performance. Including such business processed as automatic replenishment order creation; order transmission; consignment confirmation; warehousing; accounts payable creation; purchase returns.

3¡¢Distribution and sales management
Include such business processes as product quotation, blank order form creation, order form acquisition, customer credit check, product distribution, warehouse consignment, accounts receivable creation, sales returns ,etc.
The system will manage the whole sales operation by aiming at market economic environment and focusing on sales orders (Contracts). It is a multi-step and continuous system through which users can timely obtain accurate information and data about every step of sales operation. It help enterprises raise customer service level, enhance market adaptability and maintain leadership position in competition. In the system, sales quotation can be made according to different users, different time frames and different product batches. When recording sales orders, system will calculate real time the detailed amount, applicable discount, arles and various tax (such as value-added tax, business tax, excise tax, the calculation and applicable rate of which can be user-defined) and allow users to modify. Users can also view at any time relevant information such as material records, customer records, inventory status and quotations when recording orders. In order confirmation, the system can automatically check customer credit status according to predefined rules. To simplify operation, the system also provide functions for order replication and automatic conversion of measurement units. In view of ever-changing market environment, the system also allows changes to effective orders.

4¡¢Inventory management
Help warehousemen of enterprises control and manage such operations as warehousing, consignment, inventory movement and check, to reduce inventory level and decrease inventory fund occupation, to avoid situations of overstock and out-of-stock, to raise customer service level and to ensure smooth business operation progress. Inventory management will manage the quantity, cost and fund occupation of inventory from such aspects as type, material, inventory position, batch, unit and ABC classification to ensure that users can timely obtain and manage accurate information and data about all parts of inventory operation.

5¡¢Financial information management
The Accounts payable management( APM) of IDM can be used to manage all the accounts payable information generated during the course of business operation for enterprises. In practice, accounts payable management is very onerous since enterprises usually have frequent and complicated accounts payable transactions with other enterprises or individuals, which are often highly workload-intensive and plan-oriented. APM can help enterprises better manage accounts payable, effectively control capital usage and maintain a good corporate image. APM provides such functions as invoice recording, payment planning, payment processing, analysis and payment control;It also provides function to query payment status. APM is fully integrated with General ledger management and Purchasing and replenishment management.¡¡

The Accounts receivable management( ARM) of IDM can be used to manage all the accounts payable information generated during the course of business operation for enterprises. In practice, accounts payable management is very onerous since enterprises usually have frequent and complicated accounts receivable transactions with other enterprises or individuals, which are highly workload-intensive and which frequently have overdue accounts. ARM can help enterprises better manage accounts receivable and take back arrearages in time, effectively control capital usage and generate best business results. ARM can directly generate invoices according to shipment lists from order system and then automatically generate subpoenas and record to general ledger. ARM will, after receiving customer payment, allocate among accounts receivable, write off relevant account receivable and automatically generate payment subpoenas. The system can also track customer account status and overdue accounts, providing timely customer credit information.

6¡¢Decision support management
IDM' s Decision Support module provides powerful functions for report analysis. Decision-makers from all levels may see analysis results they concern most; this helps them to make better decision to manage and control the business activities of enterprises and to reduce operation risks. Analysis reports include: Sales representative business scorecard; Sales channel report; Customer sales report;Accounts receivable transaction report; Overdue accounts report;Accounts payable transaction report; Inventory report; Gross margin report