A Distributor Management System (DMS) is a software platform designed to assist companies in overseeing their distribution channels and sales processes. It offers tools for inventory management, order processing, invoicing, and payment tracking. Additionally, it enables monitoring of distributor and sales representative performance.
Commerce in Nigeria predominantly follows traditional (informal) practices. The lack of complete visibility into stock movements and transactions poses various challenges for manufacturers. As we are developing for distributors, let's explore how these issues impact their operations:
Extensive manual operations contribute to inefficiencies, resulting in leaks and wastage.
Limited access to capital and an inability to leverage business resources stem from inadequate documentation.
Managing extensive operations in a volatile market is compounded by a lack of robust forecasting tools.
Moreover, as a consequence of the demonetization and cashless policy in Nigeria, some of the encountered challenges encompass:
Receiving payments from retailers across multiple accounts necessitates distributors to transfer funds from various accounts to settle payments with manufacturers for a shipment.
Real-time visibility of Sales and Credit transactions
Effortless management of inventory across multiple warehouses.
Exploration of new sales opportunities with minimized operational costs.
Access to working capital
We needed to prioritize features based on their significance to the user, the team's limited resources, and the time constraints associated with constructing an MVP version of the product. Our research enabled us to break down these features into subunits, which are explained below. Here are some key reasons why feature prioritization is crucial when building an MVP:
Integrate a consolidated directory of all Stock Keeping Units (SKUs) into a unified platform.
Tracking inventory could be automated, providing alerts when stock levels are running low.
Access customer analytics data to enhance engagement with customers.
Implement a wallet system for automating sales and inventory processes.
Establish a platform enabling access to credit, potentially enhancing their stock capabilities.
We formulated key elements to serve as guiding principles in shaping our product requirements and user stories. Following an in-depth exploration of research themes, the identified solution elements are as follows:
Order Management: Facilitate distributors in placing orders, monitoring order status, and receiving notifications for order updates. Incorporate functionalities for order processing, invoicing, and maintaining order history.
Analytics and Reporting: Create extensive reports and analytics to offer insights into sales performance, inventory levels, profitability, and market trends. Visualize data using charts and graphs for straightforward interpretation.
Payments: Efficiently manage and reconcile payments from online orders, as well as easily settle payments for manufacturers' orders on the platform.
Inventory Management: Offer functionalities for tracking inventory and monitoring stock levels. Integrate features for efficiently managing multiple warehouses or distribution centres.
User Management: Enable administrators to oversee user accounts with distinct roles and permissions, ensuring secure access and data protection.
Sales and Performance Tracking: Capture and analyze sales data, monitor distributor performance metrics, and generate reports highlighting sales trends, customer buying behaviour, and performance benchmarks.
Mobile Compatibility: Offer a mobile-friendly interface or a dedicated mobile application for distributors to access the system and execute tasks while on the move.
Following the implementation of the design, we conducted thorough usability testing to gain a deep understanding of how users would interact with the product. Subsequently, we incorporated changes based on the results of the usability testing. Here's our approach:
Teamed up with product managers and a product designer to execute the usability test.
We conducted tests with 102 distributors to assess the usability of the application.
The usability testing sessions took place on-site.
We devised essential tasks for users to test and provide feedback on.
We obtained valuable insights from the usability testing conducted, using our task scenarios as a guiding framework. We then determined which feedback to implement based on the severity and priority level of the issues identified. Grouping insights into high-priority and low-priority categories assisted us in understanding what to prioritize and what to de-prioritize. Here are some of the high-priority issues we addressed:
Users encountered difficulties in booking Stock Keeping Units (SKUs) from manufacturers.
Adding SKUs one after another proved to be exceptionally laborious and cumbersome.
Users required the capability to view their offline sales and download receipts as frequently as needed.
Following usability testing, we successfully addressed the initial problem we aimed to solve during the development phase. This achievement involved effectively bridging the gap among all participants in the manufacturing/ordering process.
The project was a resounding success, and the entire team was delighted that we could tap into a market based on the extensive research we conducted, delivering value for both the business and our users. Presently, the product is accessible in three African countries: Nigeria, Kenya, and Ghana.
We achieved over NGN 3 billion ($6.5 million) in platform sales within 7 months.
Successfully brought on board more than 1,400 distributors to the platform within a 7-month timeframe.
Manufacturers can now monitor product pricing throughout the redistribution cycle.
A personal takeaway for me is that you can never go wrong when you support your assumptions with data.