What is Direct-to-Store Delivery?
Due to the rising market competition in retail, and growing consumer expectations for convenient and faster fulfillment, businesses are adopting various cost-effective and omnichannel distribution models. Direct to Store Delivery or Direct Store Delivery (DSD) is a retail distribution model, where a supplier or manufacturer delivers merchandise directly to retail stores for selling, instead of sending them to warehouses or distribution centers.
This delivery model is gaining popularity among businesses involved in the retail of pharmacy drugs, fresh foods, edible consumer goods such as baked foods, snacks, soft drinks and beverages, organic farm produce, and locally produced alcohol, etc.
The business benefits of embracing the Direct-to-Store Delivery (DSD) model
- By eliminating middlemen touchpoints such as wholesale dealers, it significantly reduces the overall time to market, facilitating faster all-mile deliveries
- DSD allows efficient handling of fragile and perishable consumer goods, minimizing the risk of damage during shipment and transit
- This model is highly profitable during peak seasons when the demand for special goods is high and there is a limited time for transportation
- By implementing the DSD retail model, businesses can significantly reduce storage and labor costs as goods are not stored at a third-party warehouse or shipped by a third-party
- The DSD model connects brands directly to retailers, helping them build a better relationship with the end market players.
How Locus helps businesses implement contactless delivery
Automated dispatch planning
Delivery route optimization
Sales beat planning
Intelligent parcel sorting
Smart rider allocation
Real-time fleet management and delivery tracking