3 March 2023

DMS System: What It Is and What It Is Used For

3 March 2023

Everything you need to know about the DMS system and how it helps increase profitability, optimize resources, and retain more customers for your company.

In recent years, many things have changed regarding consumption. The democratization and dissemination of new purchasing channels, especially in e-commerce, have contributed to the structural change of the tools available to users for purchasing, as well as transforming the relationship between company and customer, favoring experiences, new forms of service, and naturally the mode and delivery times, which have consequently become decision-making and differentiating elements compared to competitors.

In this evolving scenario, we see increasingly informed and demanding consumers who consider delivery a fundamental factor when making a purchase. “Is it worth shipping?”, “How long does it take to deliver a specific product?”, “Will the packaging and transport be done safely, and will my product arrive intact?” These are, for example, some of the questions often raised by the new profile of consumers in the market.

All this has generated a new demand for companies: rethinking delivery management and seeking new resources and technologies in the market. We know that creating a logistics strategy suitable for your warehouse and meeting the needs of your operational routine is not an easy task! Especially because this function within a company is recognized as a function that requires high investments, and it is no surprise, after all, it is the area responsible for coordinating operations within the warehouse, from the dock, storage processes, and order fulfillment.

It is likely that managers, while searching for improvements, technologies, trends, and enhancements in their warehouse strategy, have come across the acronym “DMS“. Do you really know what this term means, the benefits it can bring to your warehouse, and its importance for management, time optimization, and resource management within your business? In this article, we will talk a bit more about the DMS system and the transformations it can bring to your warehouse, especially when it comes to distribution management. Take a look below.

What is a DMS system?

As the name suggests, the DMS (Delivery Management System), in free translation, means delivery management system. It is, in other words, a software capable of offering practical, modern, and fast solutions to manage, control, and monitor the entire process involving the delivery operation within your warehouse.

DMS allows you to monitor information, identify errors, and modify strategies, from transport planning to identifying the best delivery routes, organizing trucks, monitoring drivers, shipments, and order status. With the software, data is shared and accessible in real-time.

The DMS system is a comprehensive software that works 100% integrated with other technologies used in the warehouse, such as ERP and WMS, for example, helping to centralize information. In this way, requests and orders circulate between systems, making the supply chain smooth and continuous, speeding up times, optimizing resources and labor, which contributes to increased efficiency and agility, as it eliminates the need for manual planning in spreadsheets. It is a true technological evolution within the warehouse.

It is therefore an ally for managers, as it falls under their responsibility to control expenses, delivery efficiency to consumers, manage and monitor employee workloads, and also track all metrics and indicators of productivity, efficiency, and process satisfaction.

Differences between TMS and DMS

Since the TMS (Transportation Management System) also operates in transport management, doubts often arise about its difference from the DMS system.

DMS, in fact, is entirely focused on distribution, involving everything related to deliveries, such as driver routes, delivery status, work schedule control, including reverse logistics operations. The software offers centralized communication, through a single platform, among all those involved in deliveries.

TMS involves planning and organizing every stage of transport operations. The system is linked to fleet control and fiscal issues related to logistics, that is, it helps in managing routines focused on transport, control, and automation of activities such as delivery planning, document issuance, and control, for example. The solution can be used by both companies with their own fleet and those that outsource the transport service, as well as by logistics operators.

Main advantages of the DMS system

Now that you understand what a DMS system is, its difference from the TMS, and the importance of investing in delivery management software for business growth and success, making the supply chain more efficient and faster, it’s time to delve into the main advantages this technology can bring to your warehouse. Let’s see the benefits:

1- Creation of intelligent routes

There are trucks and more trucks leaving the yard of a distribution center at all times to make deliveries, but were they well planned to deliver the products quickly and, above all, at low cost? Well, in the hectic daily life of a warehouse, this simple detail can go unnoticed and result in unnecessary expenses for your company.

The DMS system works for you by identifying and creating the best shipping routes through:

– Automatic calculations. Mapping all orders, addresses, sizes, and quantities and crossing this data with the number of available trucks, the best route, gasoline savings, and kilometers traveled to make a delivery is a time-consuming task that requires a highly qualified team. The DMS system does it all by itself and plans the best way to make deliveries, saving time and money and ensuring deadlines are met.

– Space optimization. In addition to drafting the route plan, the software quickly identifies which items will go on board each truck. The DMS indicates the best mode and positioning in which the goods will be allocated, as well as the order in which they will be delivered.

– Route monitoring. Throughout the process, the DMS system can identify and suggest new routes based on weather conditions, ongoing work, dangerous routes, among other adverse conditions that could delay an order delivery.

2- Monitoring delivery status

Does your company track all shipped orders and know exactly where each item is? If it seemed impossible to answer this question, know that one of the main advantages of the DMS system is also real-time monitoring of the status of each order sent. The software issues tracking and movement notifications, as well as alerts in case of delivery contingencies. This practice allows your company to quickly communicate to the customer where and when their order will be delivered, as well as notify them of possible delays.

3- Employee work schedule control

One of the difficulties for managers in having a field team, as in the case of drivers, is controlling each person’s work schedule. With the DMS system, this problem does not exist, which can even lead to complications with Brazilian legislation. The software allows you to monitor activities along the route, making it easier to know the route of your external collaborators.

4- Reducing delivery errors

Since the DMS system eliminates manual activities to control delivery management, we automatically have a reduction in the likely flow errors that occur within the warehouse. Many of the most harmful errors to a company’s good reputation are related to delivery. These issues can occur during order separation, packaging, information exchange, or during transport itself.

In addition to preventing errors during the process, having an automated supply chain also helps quickly identify an error, that is, even if a potential delivery error occurs, unlike a manual scenario, it is possible to recognize at which stage the problem occurred and quickly correct it.

5- Reducing returns

It is inevitable: returns cause losses to companies, whether they are direct financial costs or indirect costs in terms of image and reputation. Therefore, it is important to keep your company with low return rates and, if they occur, that they are processed quickly and efficiently for a good consumer experience.

In this case, the DMS system contributes directly because it improves delivery organization, preventing the occurrence of errors that could lead to return requests; standardizes operations; guides drivers, helping to organize information.

6- Customer loyalty

If the delivery operation is carried out correctly, quickly, and organized, in addition to ensuring the company makes the best use of resources and cost reduction, the customer also benefits, as they will receive excellent service. And this is where the DMS system helps a lot.

It is worth emphasizing that one of the ways to monitor your reputation is based on the satisfaction and loyalty of your customers: the higher the recurrence of orders, the greater the security, trust, and relationship with your company. You need to understand that consumers are the foundation of your company and thinking of ways to improve and meet market demands and requirements will make you a big name in your niche.

Choosing a good DMS system

After understanding the main advantages of the DMS system and how they can contribute to your company’s growth, making the supply chain more efficient and faster, it’s time to delve into the main advantages this technology can bring to your warehouse. Let’s see the benefits:

Ensure that the DMS system has a dashboard to view and track deliveries, through portable applications, with easy-to-read information.

Look for software that allows direct communication with drivers or outsourced transport companies, whose purpose is to monitor order information and identify route issues.

Prioritize software that captures the maximum amount of information based on your company’s profile: delivery date, time, location, order issues, among others you consider essential.

Choose a solution that offers real-time monitoring and route management.


DMS System: What It Is and What It Is Used For Deagor WMS per ecommerce può aiutarti!


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