Why Indian Brands Struggle with Distributor Management And How to Fix It

Why Indian Brands Struggle with Distributor Management And How to Fix It

Solving DMS Challenges in India with 18 Years of Expertise

Constantly chasing down stock reports from your distributors can be a daunting task for a business owner especially the ones owning industries like FMCG, pharma, and consumer durables. Distributors are still stuck in delayed claims, and decision-makers with poor visibility.  Meanwhile, there is also skepticism when it comes to incorporating digital solutions to streamline their business.
 

If you’re a business owner or sales head in India, chances are you’ve felt the pain of managing a complex distributor network without the right system in place. You are not alone. For over 18 years, we’ve worked with hundreds of brands who came to us with the same concerns “We can’t see what’s happening in real time,” “Our schemes aren’t reaching the right retailers,” or “Our distributors don’t want to use our system.” Sound familiar?

Distributor Management in India isn’t just about moving products, it’s about managing people, processes, and performance at scale. And when those systems break, growth stalls. So,  a question worth thinking is, how do leading brands solve these issues and get their distributors aligned, efficient, and accountable?

Let’s break down the 7 biggest challenges in distributor management, and most importantly, how to fix them.

1. Lack of Real-Time Visibility

Running a distribution-heavy business without real-time data can be confusing. It’s like driving but you are unaware where you’re heading to. You are unaware of your stock, whether orders have been processed, or how your products are moving downstream. A larger number of Indian business owners are still dependent on outdated reports and wait for days to receive updates from their distributors. By the time the data arrives, the moment to act is already gone. This lacuna further leads to poor forecasting, lost sales, and overstocking or even worse, businesses face stockouts at critical touchpoints.

The fix? A smart Distributor Management System (DMS) that provides you with real-time visibility into stock levels, order flow, and secondary sales. With live dashboards available at your fingertips, you can track what’s happening across different regions, respond faster to fluctuations, and plan smarter without guessing.

2. Inconsistent Order Management

If you’re still managing distributor orders through calls, WhatsApp chats, or Excel sheets you already know how complicated things can get. Orders get missed. Details slip through the cracks. And during peak seasons? It’s complete chaos.

Many Indian businesses still depend on these obsolete & traditional methods, thinking they’re “quick and convenient.” But what they really create is confusion, miscommunication, and unnecessary delays. One wrong entry or missed message can snowball into lost sales and unhappy customers.

A rational choice would be maneuvering to a centralized, unified and automated order management system that is part of your DMS. This ensures that everything is tracked, time-stamped, and available at a single place, from the point it is approved to its delivery.

3. Claims and Schemes Mismanagement

Your schemes may be great, but if your distributors don’t fully understand them or face delays in getting their claims settled, it creates more harm than good. We’ve seen it time and again: claims stuck in long approval cycles, unclear calculations, and confusions that turn into strained relationships.

For many distributors, claim processes feel like a black hole, where they are uncertain, slow, and frustrating. And when trust begins to erode, loyalty isn’t far behind.

What your business needs is a DMS that simplifies claims and scheme tracking. One that auto-applies eligible schemes, processes claims with built-in validation, and generates clear, audit-ready reports. No more emails back and forth or hours spent reconciling data.

4. No Visibility into Secondary Sales

It is undeniable that primary sales are crucial to tell you what’s going out of your warehouse, but do you have any idea on what’s actually selling at the retail shelf? That’s where the real demand lives. And without visibility into secondary sales, you’re basically guessing when it comes to production, inventory planning, and promotions.

Many brands in India still operate without a clear view of what’s moving at the ground level. The result? Overstocked SKUs in one region, empty shelves in another, and marketing spends that miss the mark.

A smart Distributor Management System (DMS) solves this by tracking SKU-wise secondary sales, directly from your distributors and retail channels. You get clarity of what’s working, where, and why, so that you can plan smarter, launch better-targeted schemes, and optimize inventory like a pro.

5. System Integration Challenges

You might already have a good ERP or CRM in place. But if your tools don’t sync with each other, what you really have is a bunch of disconnected islands. This hints to one thing: manual data entry, where your team gets stuck in duplicating the same data from one system to another and reconciling. 

From duplicating the same data across systems to reconciling mismatched reports, your team ends up wasting hours just to make sense of what should’ve been automatic. It slows down reporting, increases errors, and pulls your focus away from growth.

What you need is a DMS that integrates effortlessly with your existing ecosystem of softwares, whether it’s SAP, Tally, Oracle, or any other tool you rely on. With plug-and-play compatibility, the right DMS bridges the gap between departments and systems, giving you a single source of truth across your operations.

6. Resistance from Distributors

You invest in a great system but your distributors don’t use it. Does this situation sound familiar?

One of the biggest roadblocks to digital transformation isn’t the software, it’s the behaviour change management that is required to be made on people using it. Many distributors, especially in traditional markets, are hesitant about new tech. They worry it’s too complex, not in their language, or simply not worth the effort. And if your partners aren’t onboard, your DMS becomes just another underused tool.

That’s why choosing a distributor-friendly DMS is crucial. It should be mobile-first, multilingual, and dead simple to use. But even more important? A strong onboarding plan. That’s where our approach stands out, we don’t just roll out software. We handhold your distributors, offer local language training, helplines, and ongoing support to ensure even your least tech-savvy partners feel confident using the platform.

7. Weak Analytics and Reporting

You can’t grow what you can’t see. Despite this many brands are still stuck in making decisions using outdated excel, mismatched reports and mere instincts. Without robust data in-hand, it’s nearly impossible to target the voids, analyse what’s working, and recognise where to double down.

That’s where a modern Distributor Management System (DMS) can be a game changer. This is not just limited to collecting data, but also ensuring that everything makes sense. This includes real-time sales performance to SKUs that are driving business. Meanwhile, it also tracks claims, partner-wise growth insights, and a smart DMS delivers it all in one intuitive dashboard.

This ensures that you are no longer relying on sporadic reports or last month’s data and your team gets a 360° view of your distribution network, anytime, anywhere.

Are You Solving or Surviving These Challenges?

Managing an Indian distributor’s network isn’t a straight line. From regional diversity to unpredictable markets , the challenges are very real. But with the right digital partner, they won’t be roadblocks anymore.

For over 18 years, we’ve worked with some of India’s leading brands to turn distribution chaos into clarity. Whether it’s low visibility, inconsistent claims, or resistance to change, we’ve solved it with tools that are practical, scalable, and built on trust.

If you’re ready to stop fidgeting and start building a stronger, smarter distribution network, we at EAZY are here to facilitate this for you.

Book your free demo or explore our website to see how our Distributor Management System (DMS) can help you.