Direct store delivery lets retailers keep a close eye on incoming inventory and helps ensure that fresher products end up on store shelves.
What does direct store delivery mean?
Known often by its acronym DSD, direct store delivery is when products are delivered from a supplier or distributor directly to a store, bypassing a distribution center. Often the loading and uploading is done by the delivery driver, which means less work for retailers. DSD has found its fame primarily in the beverage and food industry, where decreasing supply chain time is important for product freshness. DSD has grown in importance with increased focus on shorter delivery times and volatility of demands.
How does it benefit retailers?
It allows for greater speed on meeting customer demand. It can quickly and cost-effectively put out-of-stock products back on the shelves. With shorter distances between retailers and the producers, there’s more flexibility and responsiveness. For retailers with high consumer demand and frequent replenishment, DSD is ideal.
DSD also reduces the operating and labor costs by relying less on the distribution center. Warehouse maintenance costs are expensive, so allocating savings toward more and better quality products and investing in new technologies becomes infinitely more possible. According to Honeywell, DSD retailers can save millions of dollars in transportation costs.
Big wheelbarrow provides grocery retailers with a solution to utilize direct store delivery for a hyperlocal approach at every store. Want to learn how we can help you bring fresher products to your store shelves via DSD? Contact us.