Get product delivered to your store and bypass your retail distribution center with Direct Store Delivery (DSD). By bypassing the distribution center, retailers reduce operating costs, save time, get more control over inventory, and shave money off the retailer’s bottom line.
Benefits of Direct Store Delivery Retailers?
Direct Store Delivery brings the high-volume products with short shelf life or critical freshness directly to your retail store, forgoing the inconvenient wait times of receiving it from a distribution center.
DSD delivery also benefits low density and easily damaged products, locally manufactured products, high variety and low value products, products with specific handling requirements, and highly complex products that require training.
The most important aspect of direct store delivery is the reduced labor costs – DSD accounts for as much as a 25% reduction of in-store labor in the grocery industry. With delivery drivers managing the reordering and stocking of high turnover items, retail associates are free to focus on customer service and more volume driven tasks.
Here are some other benefits of direct store delivery:
Insight into Demand – DSD delivery provides manufacturers insight to ensure stocks are replenished and shape demand for their products through promotion and merchandising. Thus, increasing the volume of items sold and the margins on those items.
Cycle Times – Products that are replenished multiple times a week have a faster replenishment cycle. In the DSD replenishment model, a supplier holds ownership of all upstream inventory. This results in products moving faster and the retailer tying up less working capital on the inventory.
Decreased Inventory Carrying Costs – With a DSD you’ll eliminate some of the costs associated with having products sit at distribution centers where consumers can’t purchase them. Leading to wider margins through increased efficiency.
