Explore The Advantages Of Direct Store Delivery
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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