I. Why Do Distributors Lose Money? Recently, I visited over a dozen distributors in Henan and Jiangxi, and many complained about not making money this year. I found that most of these distributors, with sales exceeding 10 million yuan, have management issues in their sales teams: salespeople slacking off, intercepting promotional items, combining orders, splitting orders to exploit package policies, selling at inflated prices, misappropriating funds... Analysis shows that these problems are more prominent in markets where distributors still use the vehicle sales + handwritten order model, which was suitable for lower sales volumes. I strongly recommend that distributors still using handwritten orders switch to sales management software. It's not that handwritten orders are inherently bad, but they become unsuitable once sales exceed 10 million yuan. Handwritten orders work when the boss is personally involved in the market and the team is small, as it's efficient and low-cost. However, once sales exceed 10 million and the team grows beyond 6-7 people, the boss can't be in the market daily, and the drawbacks become apparent. For instance, what salespeople do all day is based solely on their word, and the distributor only sees the day's sales figures and orders. The above issues are just part of the management problems. As the boss's social engagements increase, their sensitivity to the market decreases, leading to a disconnect between the distributor's understanding and the actual market situation. Information relies mainly on salespeople's feedback, decisions are based on past experience, and mistakes and deviations are inevitable. Thirdly, regarding actual product distribution: What's the store entry rate for old products? What's the distribution rate for new products? What are the sales volumes for the top 50 stores? How many active outlets are there? These data-driven analyses can't be handled by experience alone. When asked, most distributors are in the dark, and market analysis is based on gut feeling. Distributors are aware of these problems, but few know that this is exactly how money is lost. These issues are not unsolvable; rather, distributors don't know how to solve them. My suggestion is to install sales management software to address these issues. Using sales management software is like giving the distributor two pairs of clairvoyant eyes: one to see what salespeople are doing, and the other to see what's selling in the terminals. Through effective market feedback and analysis, distributors can improve management capabilities, reduce costs, increase operational efficiency, and boost sales. Of course, some forward-thinking distributors have used or are using such software, but during use, they find that the software doesn't achieve the expected management goals, and salespeople resist it. After a while, they think it's worse than the old method and revert to the old order model or use it only for invoicing. II. Why Does Sales Management Software Fail to Manage Teams Well? Few distributors come from management roles at manufacturers, so they lack formal management training and lack the theoretical and practical skills for management. This professional gap in team management becomes the biggest shortcoming in their business development. On the other hand, sales management software providers are mostly IT professionals whose team management experience may be less than that of the distributors. They can only tell you what features their software has and what sales scale it can support, but they don't teach you how to use the software for team management. The extent to which the software is used depends entirely on the distributor, who lacks management experience, let alone solving specific problems. It's like buying a car: the seller tells you the car's features and top speed, but doesn't teach you how to drive. Whether the car runs, how fast it goes, and how to handle it is left to the distributor, who has no driving experience, to figure out. For a driver, is driving ability more important than the car's performance? Ultimately, the effectiveness of management depends on the boss's own level and thinking. Sales management software is a management tool, and tools themselves don't create value or benefits for a company. Only when the tool is fully utilized in conjunction with the company's management needs will real benefits be seen. Using sales management software is not just adding a tool to the team; it's fundamentally changing the company's existing management model and processes. This means the distributor must make surgical adjustments to their company. Such changes require the person performing the surgery to have the appropriate reform thinking and skills. If a distributor operates on their own company without expertise, it's better not to change at all. III. How to Use Sales Management Software to Improve Management Effectiveness? Distributors should remember: The purpose of introducing sales management software is to improve management efficiency. The core is not to teach employees how to use the software features, but to change the thinking, processes, and methods from the boss down to the employees. The software features are not the most important. Before reform, the boss should consider four aspects: 1. What are the benefits of this management system? 2. What problems can this management system solve for me? 3. How does this management system operate? 4. How to introduce this management system? The benefits and whether to use the tool have been clearly explained above, so I won't repeat them. For the subsequent questions, based on the distributor's actual situation and internal issues, a new management plan and process supported by the sales management software should be designed. To design the plan, follow these four steps: 1. Identify the core problems. 2. Analyze the underlying causes. 3. Determine how many can be solved through technical management means. 4. How to integrate these technical management means into daily work and management? Once the distributor has a preliminary framework in mind, it's not too late to start using the software. In the early stages, two common problems arise: One: Unfamiliarity with the software's features and backend, leading to fear and resistance among the distributor and users, causing the plan to fail. Two: Disruption of existing workflows, causing some chaos in daily operations. These two problems are the core reasons why many distributors fail to implement. From my experience, the implementation of plans and processes should be phased, following the principle of easy first, then difficult. Especially when changing the team, note: First fill the pocket, then change the mind; First adjust attitudes, then change habits; First establish standards, then change the market; To explain: Start by using simple features, provide timely and effective rewards (small but frequent daily cash prizes) to users, and make them realize that using the software can increase income, thereby changing their attitude and habits. During the attitude change process, continuously instill the benefits of using the software: increased income, improved work efficiency, effective decision-making and data analysis, etc. When the team gradually accepts it, introduce all management functions in stages. When using software for terminal operations, design quantifiable, measurable, and evaluable standards first. These standards should be created around effective market operations. Only with standards can market operations change quickly and uniformly. Many distributors rush the introduction, often achieving half the results with twice the effort, leading to failure. Generally, it takes three to four months for a quick implementation, or six months to a year for a slower one, before results gradually appear. IV. What Software Is Available and How to Choose? There are many types of sales management software online, such as Molihutong, Liankai, Xiaoke Yongyou, Zhiketong, Qibing Software, Shangwuyou, Suda 3000, etc. I won't delve into the pros and cons of each here, but note: Before buying, compare three aspects: Technical, usability, and service: completeness of features, ease of use of the front-end, UI friendliness, backend data analysis and reporting capabilities, subsequent customer service support, software/hardware prices, and consumable costs. Match these with your own needs to decide which software to use. 2016 is a critical year for China's internet B2B model's impact on the FMCG industry. As I mentioned in previous articles, don't avoid, resist, or reject the internet. Learn to use advanced tools to arm yourself, improve operational efficiency, and reduce costs. Using sales software is definitely a required course for distributors.