We live in an era where a product has to go through many channels before it could reach the stores and then to the customers. These sales channels include independent distributors, third-party brokers, internal sales forces, and DSD direct store delivery. Now the retailers and even manufacturers are looking for a direct route via which the products can be delivered earlier than the estimated timeline. This is where DSD – Direct Store Delivery is coming into play.
Let's gather some information about DSD and learn how this solution can work seamlessly together to boost productivity and give you the best efficiency and benefits possible.
What is Direct Store Delivery (DSD)?
It is a term used to describe a method of delivering products from a supplier or distributor directly to a retail store, meaning bypassing the traditional retailer's distribution channel. The sales and delivery reps deliver products directly to the retail store. It is a new way of using a centralized distribution model and retailer's distribution centers.
DSD delivery is ideal for fast-moving consumer products like food, beverage, personal care, oil, and gas. It enables profitable growth, sales engagement at the point of sale, and service excellence.
Now, let's talk about its advantages.
Shelf Space Control and Sales Boost
Every retailer wants to sell their goods faster so that the shelf gets empty early and can be replaced by fresh products. Direct store delivery companies help in making this possible as the retailer is able to get items with a high turnover on the shelves and selling it fast to increase their sales. The competition is on the rise and a retailer must get smarter and provide goods to the consumer before others.
Decreased Inventory Carrying Costs
Inventory cost is one of the major concerns a retailer has to face. Many times the products keep sitting in the store or in the storage units. The delay in getting the product from the manufacturer, by going through various sales channels also increases the cost. Direct store distribution helps you to decreases the inventory carrying cost. By having a shorter chain, you will receive the goods faster that will cut down the cost of items sitting in the warehouse. The products will reach the self sooner and will also be sold out fast.
Increased Flexibility for Pricing and Sales
As we mentioned many times, through direct store delivery, you are able to eliminate various sales channels which ultimately means that the product you receive is less costly than those being sold by your competition. You can then offer flexible pricing to the customer, which will also make them happy and want to choose you the next time as well. Thus, you will see a boost in your sales.
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We provide smart solutions to DSD (Direct Store Delivery) companies. Our platform acts as a hub for all of your distribution needs, starting from managing drivers, inventory, sales, deliveries, and more, all from one spot. http://www.infotechpartner...