Direct Store Delivery Best Practices – DSD Sales Guide
In an era where the retail industry is having a hard time, it pays to look for ways to improve efficiency and cut costs. The latter needs to be done without impacting on customer satisfaction, and there can be no cutting corners when it comes to providing the best service. What are the answers? One of them is to look at Direct Store Delivery (DSD) and, where possible, perhaps implement it in your structure.
What is DSD, and why are more suppliers and retailers benefiting from this method of streamlining an operation? Let’s take a closer look at DSD, how it works, and why it is becoming more commonplace.
The 21st century sales representative works in an entirely different world to that of even 20 years ago. Gone are the days when you went to visit a potential client, took the order and headed back to the main office, all in good time! Today, the key lies in responding to leads in double-quick time, getting the go ahead as soon as you can, and getting that order back to the team at the office almost in an instant – and quicker if possible! The world of commerce and industry is very much time-driven now, so any tool that can help the rep out in the field is always going to be welcome.
Direct Store Delivery is a method of getting goods from supplier to store that effectively cuts out one stage of the operation. Traditionally, a manufacturer produces items which – when ordered by the retailer – are then sent to the retailer’s central distribution centre. This can be a large warehouse in which goods are stored, waiting to be delivered to individual shops when required. This method has been used for many years by retailing chains, and it can be very efficient and successful.
Yet, in this day and age, is there really a need for that central distribution centre? The warehouse costs money to operate, after all. What if you could do away with that central distribution centre – and the costs it entails – and deliver direct from supplier to the individual store? That’s what DSD is about; it’s a method of distribution that avoids the added cost of the centralised distribution model.
What are the benefits of DSD for both supplier and retailer?
Benefits of DSD
For the retailer, not having to rely upon a central distribution centre means quicker delivery time. Rather than loading, delivering to the warehouse, then loading again for delivery to the retail unit there is one simple transaction: load at the suppliers, deliver and unload at the retailer. This cuts out not only time, but money.
It also means the retailer has direct control at all times over inventory, and can handle stock control much more accurately. Unsurprisingly, DSD is most used in the food and drinks industry, where quick delivery and fast turnaround are part of the deal. Being able to order directly means getting things in store at the right time, ready for sale while still fresh.
With frequent deliveries and no need for large amounts of stock in holding, you also get the benefit of less waste and also reduced incidents of theft. Storage space can be utilised in other ways, too, and quality control becomes easier.
For the supplier, DSD allows for greater flexibility in production and logistics, along with the cost savings that come with both. It is now a proven method of getting goods from supplier to retailer, and one that you might want to take a closer look at. With online retailing rising in popularity, physical retailers need all the help they can find, and switching to DSD may be one of those opportunities.
If OIS Mobile for DSD is of interest to you, why not fill in your details at the website and we will happily arrange to give you an online demo. – we’re confident you’ll be impressed!
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