In a typical retail supply chain, the goods travel from the manufacturer or distributor to the retailer’s distribution center for delivery to the individual stores. While this process works well for many items, others are better suited to a faster, more efficient method — like direct store delivery (DSD).
About Direct Store Delivery
DSD is the process of delivering products directly from the distributor or supplier to the store. This method eliminates a link in the supply chain, as the goods do not pass through the retailer’s distribution center. DSD is ideally suited for fast-moving, high-demand consumer products like food and beverage and perishable items.
Benefits of Direct Store Delivery
Integrating DSD can boost a retailer’s overall distribution strategy by providing an alternative for getting products to the store. The advantages of direct store delivery include:
- Get products on the shelf faster: An out-of-stock item means more than a lost sale. It often results in customers visiting the competition to get what they need. By skipping the distribution center, DSD enables goods to get to the store faster so retailers can keep the shelves full.
- Anticipate needs: In the DSD process, the delivery person has a finger on the pulse of the store and its sales, which enables them to anticipate the right quantities for each delivery. There is also frequent communication between the supplier and the store personnel. If the store is planning a major sale or promotion, it can inform the delivery person to increase the order as needed.
- Reduce transportation costs: DSD reduces the retailer’s dependency on its own truck fleet to deliver products to the store. Consequently, it will experience lower expenses in areas such as vehicle maintenance, fuel, and insurance. Many retailers that incorporate DSD into their distribution strategy lower their transportation expenses by as much as 15%.
- Reduce labor costs: In many cases, the driver who delivers the goods also stocks them in the store and processes the return of outdated or damaged items. This reduces the demands placed on the store’s labor force, resulting in cost savings for the retailer.
- Maintain product freshness: DSD products are often perishable items that have a short shelf life. Because these goods will spend less time in the supply chain and receive frequent service from the delivery person, there is less chance of spoilage.
- Less in-store storage space required: Shorter DSD supply chain and faster delivery times mean that retailers don’t have to carry as much backstock in their storage areas. Less merchandise in the backroom leads to lower inventory carrying costs.
Learn More About Direct Store Delivery From Central Florida Freezer
As a full-service food storage and distribution company, Central Florida Freezer has a thorough understanding of the advantages of direct store delivery. We pride ourselves on providing the highest level of customer service as well as competitive pricing, little to no detention and efficient truck loading and cross docking processes.
Feel free to contact us today with any questions or to request more information.