Distribution runs in two directions: schemes down, claims and returns up

The middle of the chain

Brands, super-stockists, distributors and retailers each hold part of the story. A scheme begins with the brand, is passed down with terms, and is claimed back after sales happen. Damaged goods and expired stock are returned upwards and settled later. DistroOS is designed for this middle position, supporting brand, super-stockist and distributor relationships.

Downward flow

Everything that goes down the chain needs a record of its terms.

• Pricing rules and the schemes attached to them.
• Credit limits and checks before an order is accepted.
• Orders, invoices and delivery, with transport and freight.
• Digital ordering by retailers or field staff.

Upward flow

Everything that comes back up needs a record of what it relates to.

• Claims against the brand for scheme benefits given.
• Damaged stock and returns, with the reason.
• Settlement of claims and reconciliation against what was received.
• Collections from customers, through bank transfer, cheque, gateway, UPI or cash on delivery.

Why one direction is not enough

A business that tracks only sales and schemes will give benefits it cannot recover. A business that tracks only claims will not know which sale or scheme each one came from. Linking the two means that when a scheme is applied to an order, the matching claim record already exists, waiting to be raised and settled.

Hidden margin exposure

Claims, expiry and cash in hand can erode margin quietly. The loss rarely shows up as one event. It builds as small differences between what was promised, what was given and what was recovered. Keeping both directions in one operating view makes these differences visible while there is still time to act.

From the field to the books

Field orders, delivery trips and collections should arrive in the books as records with a trail, not as figures typed in at the end of the day. When field, logistics and collections records support the accounting outcome, the accounts team can verify an entry by following it back to the order or the receipt.

A checklist for your own operation

• Does every scheme applied to an order create a claim record?
• Can we see claims awaiting settlement by brand and by age?
• Are returns linked to the invoice and batch they came from?
• Are credit checks applied before an order is accepted?
• Do collections reconcile to the invoices they clear?
• Can a delivery be traced from order to freight to payment?

Inventory decisions sit between the two directions

Stock is where the downward and upward flows meet. A batch bought under one scheme may be sold under another, returned damaged or approach expiry. Recording SKU, batch, MRP and warehouse lets the team see exposure by item and decide whether to sell through, move or return it. Because the same record carries the scheme and the claim, the decision can take recovery into account rather than looking only at the stock figure.

Where to begin

Choose one brand relationship and follow a scheme from the brand, through your orders, to the claim and its settlement. If every step is recorded and linked, you have the pattern for the rest. If a step is missing, you have found where margin is leaking.

Want to see how this applies to your industry? Browse the seven Kramvyu products or book a demo.