Supply chain struggles continue to plague retailers. While manufacturers create some delivery delays, many delays result from disruptions along the supply chain. When goods face delays at warehouses or distribution centers, retailers need options for filling their shelves. Direct store delivery distribution (DSD distribution) is an alternative to centralized distribution.
What Is Direct Store Delivery?
What does DSD mean for retailers? DSD distribution allows suppliers or manufacturers to ship merchandise directly to a retail location through a trusted logistics partner like Veltri Inc. Retailers do not have to wait for shipments from a central warehouse, eliminating one link in the supply chain.
Why Use DSD Distribution?
Direct delivery can help retailers reduce spending, shorten their supply chain, and minimize customer frustration.
Lower Logistics Costs
Through DSD, retailers may cut warehousing costs. With a centralized model, goods are shipped to a central warehouse and then distributed to retailer locations. The retailer pays for the storage of merchandise and staffing for sending and receiving goods. Transportation costs may be higher depending on the distances between centralized locations and retail outlets.
Shorten Delivery Times
Shipping direct from a supplier means bypassing links in the supply chain that could cause delays. For example, congestion at distribution centers can slow down delivery. Transport routes may be longer to accommodate multiple suppliers. With DSD distribution, merchandise ships from the manufacturer to the retailer without intermediate delays.
Less Customer Frustration
Timing deliveries is simpler with fewer intermediaries. Customers do not see empty shelves or out-of-stock signs when looking for merchandise. They don’t become disgruntled and do not switch to another store where the items are in stock.
Direct delivery can also reduce the in-transit time and maximize shelf life for retailers selling fragile or perishable goods. Transporting fragile items often involves moving goods from one carrier to another, but each move increases the likelihood of damage. Perishable items can arrive fresher and with less damage.
Best DSD Practices
DSD is not without its challenges. Keeping track of inventory can be difficult when merchandise doesn’t come through a central warehouse. Also, routing information may not be available from every DSD company. Even invoicing and delivery acceptance can be time-consuming if you use manual processes.
Organizations can avoid or minimize these obstacles if retailers use the following best practices:
Technology has changed the transportation industry. GPS-enabled trucks and trailers tell companies where their drivers are 24/7. With the right solution, DSD companies can share that information with customers for end-to-end visibility.
When weather, accidents, or road construction alters a route, companies can make and share the changes in real time. Retailers using DSD services rely on up-to-date route information as there’s no centralized service tracking their shipments.
Electronic Data Interchange (EDI)
EDI capabilities allow transport information to be sent electronically. Retailers using DSD companies with EDI capabilities can use technology to send and receive purchase orders, invoices, and bills of lading. The data exchange means faster scheduling and delivery of merchandise. The capabilities also ensure that all information can be stored at a central location, even if shipments are delivered to multiple retail locations.
Retailers should consolidate their data either on-premises or in the cloud. They should schedule data backups so the information can be retrieved in case of a cyberattack or business disruption. Without intermediaries, retailers must ensure that their data is protected and available for reference.
Finding a DSD Distribution Partner
Not every transport company is a DSD company. Also, not every DSD company helps retailers follow best practices. Veltri Inc. has the equipment, experience, and expertise to assist retailers in developing a DSD distribution model.
- Veltri’s trucks, trailers, and transport equipment have GPS tracking for accurate reporting for every shipment. Our in-house technicians ensure our vehicles stay well-maintained.
- Veltri began operations in 1973, offering local and regional trucking for the Northeast and Mid-Atlantic region. The company specializes in regional shipping in southeastern Pennsylvania, New Jersey, and Delaware.
- Veltri’s EDI capabilities are just one of the technologies the company uses to streamline operations.
What sets Veltri Inc. apart is its commitment to people, whether it is customers, employees, or the community. Veltri Logistics retains the customer focus that was a founding principle when the company began operations almost 50 years ago. If you’re looking for a DSD distribution partner, then contact us today.