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Direct Store Delivery, or DSD, is a distribution strategy that offers an alternative to centralized distribution.

What Are the Benefits of DSD?

The benefits of DSD include the following.

Reduced Operating Costs

DSD allows retailers to reduce operating costs by sidestepping the retailer’s distribution center. Instead, goods travel directly from the supplier to the retail store, shaving time and money off of the retailer’s bottom line.

Greater Control over Inventory

Additionally, bypassing the distribution center and communicating directly with the supplier gives retailers greater control over their inventory, which in turn drives sales growth.

RFID scanning performed by a worker. This is helpful for inventory management in situations like direct store delivery.

Flexibility

From the supplier’s perspective, DSD represents a commitment to remain flexible and responsive, adjusting deliveries to meet the changing wants and needs of the end customer.

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Direct Store Delivery Trends

Within the consumer product landscape, DSD is most popular in the food and beverage industry, where minimizing supply chain time in the interest of freshness is a top priority.

Contract Packaging services provided by a warehouse storage services provider.

 

So, do suppliers just have one huge warehouse? Usually not. More often, suppliers rely on a network of distribution centers that serve as regional distribution hubs.

Some distribution centers can also provide value-added services like repacking to prepare products for special promotions at the point of sale.

Who Benefits Most From DSD?

According to an article in Inbound Logistics, retailers whose products and supply chain exhibit the following characteristics would benefit from adopting a DSD distribution model.

CWI is a Top Rated Direct Store Delivery Partner

If you’re looking for a warehousing partner to help support a DSD program for both temp-controlled and ambient goods, give CWI Logistics a call today!

 

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