Direct Store Delivery (DSD) has been making waves for all the right reasons in recent years. For those of you who don’t know, the term describes a shipment delivery system in which the ordered product is delivered directly from the retail store to the consumer, effectively eliminating the middle man (i.e. the distribution center).
While that may not sound like a big deal at first, it’s important to understand the impact it can have on your business. Here’s why your business needs Direct Store Delivery as soon as possible.
1. The Competition has a Head Start:
If numbers posted by the Grocery Manufacturers Association (GMA) are to be believed then 24% of unit sales were executed over a DSD business model. While that seems impressive at first, the gravity of the situation becomes even more apparent when you realize that this report was published back in 2008 – a decade ago!
Over this ten year period, there are countless businesses that have seen this stat and made the decision to adopt DSD. In other words, your competitors already have a head start and DSD is the reasons why they’re outperforming you in the open market.
2. Increased Sales:
The best thing about Direct Store Delivery is that it directly leads to a significant increase in your sales.
A lot of this has to do with the fact that companies and stores that follow a DSD model are always aware of their current inventory and never have to turn away customers because their items are out of stock.
3. Improved Speed to Market:
It’s estimated that a well-drilled and well-executed DSD business module can help stores reduce their speed to market of new items by nearly 2 weeks.
This can be attributed to the fact that the DSD items effectively bypass the retail distribution center.
4. Significant Cost Savings:
It should come as a surprise to no one that DSD promises substantial cost savings in the long run. This is possible due to a number of different factors;
First and foremost, by using DSD products, companies can eliminate the time and the manpower needed for effective merchandising. Secondly, the increased speed to market means that DSD goods are likely to turn several times before you have to pay to the distributor. And lastly, the distributor handles almost all of the upstream costs.
It’s because of these reasons and countless others that we’re such strong advocates of Direct Store Delivery. In fact, the Crave InfoTech team has been working closely with Zebra Technologies to launch Route Optimization – a revolutionary solution that aims to enhance the customer experience.
This new solution relies on our impeccable Direct Store Delivery solutions that have helped countless stores make substantial savings. We also offer SAP Enterprise Mobility Solutions and RDS for SAP Mobile Platform – top-notch services that will revolutionize your business!
Get in touch with us today to learn more about how you stand to benefit from our solutions.