What is distribution management software (DMS)?
Distribution management software runs the operations of businesses that buy, hold and move stock: multi-warehouse inventory, purchasing, order fulfilment, pricing and route-to-market execution. Unlike generic accounting tools with an items list, a real DMS understands real costs, batch tracking, branch transfers and van sales — the mechanics that decide whether a distributor actually makes money.
Why real cost is the number that matters
A distributor's margin is decided before the product sells: purchase price plus freight, duty, clearing and handling. If your system prices from supplier invoice alone, every 'profitable' order may quietly lose money. Landed-cost allocation spreads those charges across the shipment — by value, weight or quantity — so item costs, and therefore selling prices and margin reports, reflect reality.