Direct Store delivery means that each account is visited by sales and delivery agents every day or at least once a week and products are delivered directly to the retainer itself. The use of a centralized distribution model and distribution centers is an alternative way of thinking. Today DSD often means more than drivers dropping off goods at the outlet.
This is especially the case when we talk about items that have a high volume of changing consumer demand and which will move. The model enables profitable growth, sales commitment and service excellence at the point of sale.
The advantages to using this approach include the following:
- Retail Shelf Control and Boosted Sales – You can often increase sales because there will be less time when you only have nothing on the shelf when items of high turnover can reach the retail shelf quicker. Concentrated on a growing number of competitive products are the competitions for the retail shelf space. Information collected using surveillance tools can be used to generate insights into the behaviour of consumers.
- Lower Inventory Costs – With a shorter chain, you will eliminate some costs related to the fact that items can’t be found even in centres. All of this leads to more efficiency and wider margins.
- Expanded service coverage – A growing client base ranging from small, independent stores to large chain dealers to hundreds of thousands of deals.
- Increased price and sales flexibility- When the numbers look as if a promotion is right, then you can take greater advantage of both pricing and sales.