Best Distribution Management Software in 2025

What is Distribution Management Software?

Distribution management software is a type of computer program that is designed to streamline and optimize the processes involved in distributing goods or services. It can handle every aspect of distribution- from product manufacturing to handling customers or end users. It comes with various functionalities to manage the entire distribution chain efficiently, including inventory management, order processing, logistics, warehouse management, transportation management, and supply chain visibility. 

It provides advanced order processing and financial management capabilities. Distribution management software is also used for controlling costs and reducing order times involved in a supply chain process.

Moreover, you can stay ahead of the competition with reduced procurement costs using distribution management solutions. It helps with inventory tracking and warehouse management along with order processing and supply chain management. Managing data across warehouses is easy with real-time visibility into transits and costs. Distribution management system software is a complete enterprise resource planning system that can also assist in other critical processes like sales and customer support.

Thus, every customer query or concern regarding logistics delivery can be addressed efficiently. Distribution software provides an automated way to the distributors to effectively manage their overall operations including orders, inventory, shipping, salesforce, warehouse, etc. 

Types of Distribution Management Systems 

Distributor management systems are crucial for managing and optimizing the distribution of goods and services. There are several types of distribution management systems, these are:

• Customer Relationship Management System: Customer relationship management (CRM) system helps businesses manage interactions with clients and potential customers. It stores customer information, tracks communications, and streamlines processes throughout the customer lifecycle. 
• Warehouse Management System: This type of distribution management system optimizes warehouse operations by efficiently managing inventory, orders, and workflows. It ensures accurate stock levels, streamlined order fulfillment processes, and maximized space utilization. It leads to improved productivity and customer satisfaction. 
• Supplier Relationship Management Software: Supplier Relationship Management (SRM) software is a tool designed to streamline and strengthen your interaction with suppliers throughout the business cycle. It does so by simplifying the communication between a company and its suppliers across all stages from sourcing to payment. 
• Enterprise Resource Planning Software: Enterprise resource planning (ERP) system helps businesses manage their day-to-day operations by automating and coordinating processes across the company. I can connect and streamline activities across different departments such as finance, accounting, inventory, sales, etc. 

What to Look for in a Distribution Management System?

Organizations today are establishing competitive advantages and lowering operational costs with sales and distribution management software. Along with the supply chain and order management functionalities, you need to check for these factors while selecting the best distribution software. 

• Process automation for customer retention: Process automation offers visibility into a stock that is available or in transit to improve product delivery services for customers. Sales and distribution management software can be further used for tracking products, optimizing quotes and faster resolution of issues to ensure happy and satisfied customers. 
• Automated order processing: Sales and distribution management software's automated order processing capabilities help with configuring rules and order status for applying for discounts/promotions. All updates regarding shipment information, current pricing and inventory are made readily available by the best distribution ERP software solutions. End-users can configure these processes based on the workflows. 
• Reduced-order timings: Dealer distribution management system helps with not just fulfilling orders and improving customer service but also automating warehouse management procedures for reducing order times. The software does this by making tasks such as physical counting, transferal and packaging completely automated. Immediate alerts are generated every time such items get scanned for entry into the system that haven't been purchased to further help in decreasing order times. 
• Data visualization tools: Wholesale distribution software lets you estimate the profitability margins by product line, business unit or warehouse. The data visualization tools help in the process by spotting cost overages and drags on profit margins through detailed financial reports. 
• Returns management: Tracking of damaged returns shipped to suppliers can be done easily with the dealer distribution management system. You can further use this module for managing product replacements, issuing replacement/credit notes and entering item-wise remarks. Businesses also use this feature for making returns based on the purchase price. 
• Managing financial accounts: Making voucher entries and auto-scheduling for clearing outstanding debts are core support features of this module. Controlling the entire approval process for validating transactions also gets simplified through distribution software. You can further rely on this software for reconciling receipt instruments.

Benefits of Distribution Software for Distribution Companies & Enterprises 

Distribution management solutions are highly configurable and easy to use. Reporting, accounts payable and order entries are some such advantages of using this software. Other such benefits of distribution management software are: 

1. Convenience for customers: Distribution software automates sales order processes for fast and efficient product delivery. Moreover, the invoicing and ordering processes are automated by distribution management software, which helps to reduce cycle time and ensure satisfactory customer support service. The entire process starting from placing orders to setting credit limits till final shipping and delivery is made hassle free by distribution ERP software. 
2. Bulk breaking: Distributor management system software ensures that the products can be moved from distribution centers to the destination as a single unit. This bulk breaking is required for controlling costs across the entire distribution and supply chain. The bulk breaking feature further helps with better space management. 
3. Improved vendor relationship: These tools optimize and automate supply chain operations such as generating purchase orders as well as managing purchases. These are necessary for improving vendor relationships so that there is always a regular supply of goods for distribution. The vendor management capabilities of distribution software assist in generating timely, error-free invoices and managing the supply from vendors in terms of quality and quantity. 
4. Better time management for enterprises: You can use software for distributors for managing accounting, warehouse, inventory, supply chain and other important processes. With all your distribution-related processes being taken care of, you can work more towards improving sales and customer service. 
5. Mismatch monitoring: Mismatch monitoring is one such feature that helps departments across a business keep track of wrong entries. Distribution system software can be used for checking inconsistencies in a company's record to make sure there is no mismatch between inventory levels and the orders in transit. Once mismatch monitoring is implemented, it is easier to avoid problems in delivery, sales record and trading. 
6. Reduced costs in stock & transaction management: Monitoring transactions and stock status has become easy with distribution management system software. Because most of these monitoring and calculating tasks are automated, the cost of running these operations is very low. 
7. Efficient processing of claims: Wholesale distribution software, through real-time offers and stock tracking, helps businesses sell more. The software can be further used for tracking claims throughout a distribution chain. You can use verification protocols provided by these applications for managing reclaims. 
8. Outstanding reports for credit limits: Distribution software solutions help with collection and outstanding reports generation that let a business have complete control over their credit limits. The feature could also be used for locking credit bills as and when the need arises. Managing ledger accounts, analyzing fund flows as well as entering for customers their opening balance is fast and efficient with distribution ERP software.

Importance of Distribution Management System

Distributor management software plays an important role in optimizing distribution operations for businesses. By providing real-time visibility into inventory levels, order status, and delivery logistics, a DMS enables efficient inventory management, reduces stockouts, and minimizes excess inventory costs. It streamlines order processing, leading to faster order fulfillment and improved customer satisfaction. Moreover, distribution software facilitates better collaboration and communication between suppliers and distributors, enhancing overall supply chain efficiency.  

With comprehensive data analytics and reporting capabilities, businesses can make informed decisions, identify trends, and optimize distribution strategies for long-term success and growth in competitive markets. 

It also enables seamless coordination between manufacturers, suppliers, and distributors, ensuring timely delivery of goods to end customers. By automating tasks such as order management, invoicing, and inventory tracking, a DMS minimizes errors and streamlines operations. This boosts productivity, reduces operational costs, and ultimately enhances profitability.  

Additionally, these tools provide valuable insights through data analytics, helping businesses identify opportunities for improvement and make informed decisions to stay competitive in dynamic markets.

Must Have Features of Distribution Software 

Along with distribution ERP software's abilities to promote revenue growth with updated sales data reports, you can trust this software for distributors to eliminate data errors and redundancies. While buying an ideal distribution software, ensure the following features:

1. Barcoding: All orders must be barcoded for unique identification. The best distribution solutions must provide barcode integration within the software. Businesses can use barcode features to mark the orders uniquely and use these barcodes for future references. 
2. Import & Export Management: Various import and export operations can be effortlessly managed with special features in the distribution software. Excise and tax calculations along with other legal formalities can be seamlessly fulfilled with extensive features. 
3. Purchase management: Ensure that the software can manage purchases effectively. So, purchase orders can be generated for new purchases and all purchase details such as quantity, rate, vendor, etc. can be captured. Supplier details can also be recorded with their performance and order history. 
4. Sales Management: The tool should also have sales functions such as sales orders, party details, mode of payment, quantity sold, etc. that can be administered with comprehensive features in the software. 
5. Inventory Management: Complete inventory control can be enforced with inventory management features, which allow businesses to maintain re-order level, stock in hand and the auto stock update on each transaction or stock transfer. 
6. Order Management: Orders taken from customers need to be managed efficiently. So, choose software where orders can be generated, recording payments is easy, and the stock can be simultaneously auto updated. The order status can be tracked effectively with intuitive features. 
7. Returns Management: Returned orders must be notified to the concerned authorities, detailing should be recorded, and appropriate actions should be taken. The best distribution software supports returns management effortlessly. 
8. Shipping Management: Orders can be scheduled for dispatch and delivery. Shipment details can be preserved for later use and the delivery status of every order can be tracked on the go with special features. 
9. Warehouse Management: The distribution software also allows efficient warehouse management. Stock transfers, IOT/batch transactions, gate pass are some of the few functions that can be automated with distribution system software. 

Best Distribution Software Comparison 

Here is a comparison of the best distribution management software along with their key features and pricing plans.

Best Distribution Software Comparison
Softwares	Key Features	Pricing
NetSuite	Real-time visibility throughout entire organization , Robust dashboard and reporting , Automated order processing , Back-office inventory management , Accounting and order fulfillment , Supply chain optimization , Built-in CRM , Warehouse management	Available on request
Horizon ERP	Credit management , Warehouse management , Sales order bulk processing , Ledger summaries , Cash Collection statement , Offers & Scheme management , Route wise sales report , GST return filing , Godown wise stock reports. , Closing Stock Reports. , Inward and outward sales tracking	Starts at $160
QuickBooks Enterprise	Centralized vendor information , Automated inventory management , Streamlined order management , Order tracking and sales fulfillment , Flexible and robust reporting options , Apply automated and granular pricing rules	Starts at $1922/year
Acumatica	Automate cross-company transactions , Streamline sales orders , Warehouse and inventory management , Sales order management , Distribution requirements planning (DRP)	Available on request
Epicore	Manage inventory, networks, logistics, pricing, and rebates , Optimize operational costs , Get data and analytics for improved decision-making , On-time order processing , View active orders, outstanding invoices, cash flow, and inventory in real time	Available on request
Brightpearl	Inventory planning , Advanced insights and analysis , Multiple plug & play apps , Extensive app integration , Sales forecasting and inventory planning , Multi-channel order management , Wholesale and warehouse management	Available on request
Eazy DMS	Stock and sales visibility , Replenishment and order management , Scheme claim management , Channel financing , Multi-brand invoicing , Distributor portal , Integrate with other ERP solutions , Complete master & Price control	Available on request
Logic ERP	Advanced order management , Auto stock replenishment , Multiple warehouses , Track primary, secondary and tertiary sales , Accounting & financial management , e-File GST returns , E-commerce integration , Sales/Goods return management	Available on request
Quickbase	Real-time dashboards and data reporting , Inventory control, order management, and supplier management , Collaboration and sharing , Highly customizable , Store data in web-hosted applications	Starts at $35/user/mo
Freshsales	Inventory management , Sales forecasting , Robust multi-channel engagement , API and Marketplace access for enhanced integration , Highly customizable sales pipeline	Starts at $9

Distribution Management Software Pricing 

The cost of distribution management platforms can vary depending on factors such as features, functionalities, and scalability options. Entry-level solutions often start at a few dollars per month, while enterprise-grade platforms with advanced functionalities can cost you around $1000-1500 a year. Furthermore, software customization, training, and ongoing support also contribute to overall expenses. So, it's essential for you to assess your specific needs and budget before selecting an incident reporting tool.