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Step by step for Direct store delivery (DSD), why focus on DSD and key success in DSD

03/Nov/2014

What is Direct Store Delivery?

In Direct Store Delivery (commonly known as DSD) consumer goods suppliers are responsible for their product all the way to the retail store shelves or other end customer selling locations. Direct Store Delivery operations may be done by a consumer goods manufacturer or by their distributors, wholesalers, or bottlers. The three main activities done in DSD operations are sales, merchandising and delivery. Typically, DSD is used for high volume, high velocity products (e.g. beverages, snack foods).

Why Focus on DSD?

The benefits provided by mobile systems are widely recognized by consumer goods suppliers with DSD operations. The DSD market is mature with over 600,000 routes installed globally and strong year-on-year growth. Replacement opportunities exist within the installed base and expansion opportunities exist, particularly in emerging regions. DSD routes can be harsh and complex (pricing, promotions, taxes, suggested ordering methods, etc.) so your understanding of the environment and offering products/services that are designed for DSD are valued. Intermec is particularly well positioned in DSD as a recognized, long-standing provider and partner with products and services that are well-suited to DSD.

What is Driving Business in DSD?

The primary target areas for consumer goods suppliers’ technology investments are:

Efficiency and/or productivity
Operating costs
Business growth
Customer service
Revenue

The main supply chain challenges for consumer goods suppliers are:

End customer expectations/needs
Product proliferation
Increasing number of locations, delivery complexity
Pace of new products
Globalization of supply chains

Keys to Success in DSD

It is critical for success in DSD to have a good understanding of the aspects that are unique to DSD operations, the segments within the market and the particular customers being targeted. Many of the larger DSD companies have existing route solutions so it is important to understand their current needs and where there are opportunities for demonstrable benefits and ROI. Whole product solutions include mobile computing hardware, back office and mobile applications, communications, and services to help customers deploy and manage the system. Intermec and the sales tools and additional resources on this site can help you to be successful in DSD.

Product for Direct Store Delivery

Intermec CN51

Datalogic Elf