Every business must tackle a significant challenge: ensuring their products reach customers efficiently. With the right distribution strategy, operations run smoothly, creating a win-win situation for all parties involved. This is particularly crucial in today's demanding retail environment, where consumer expectations keep soaring and there’s zero tolerance for slip-ups.
So how can you build a robust distribution strategy? How can you streamline the journey of your products from the factory to the store? And where do technology and data-driven insights fit into this optimization puzzle?
The answer lies in direct store delivery (DSD) — a time-tested solution that has powered the logistics success of some of the biggest names in the industry, from Coca-Cola to Nike. If you too want to make your operations work smarter, keep reading.
Direct store delivery is a distribution strategy focusing on shipping products straight from the supplier or distributor to the retail store. By bypassing the retailer's warehouse or distribution center, DSD eliminates intermediary steps — paving the way for an efficient and streamlined delivery process. This model isn't limited to any specific type of goods but is particularly effective for fast-moving consumer products such as food, beverages and personal care items.
Why has DSD become such a notable player in the realm of distribution? Simple — because of its ability to enhance inventory management, minimize stock shortages and overstock. It also helps ensure that the right products are readily available for consumers when they need them.
But how does DSD fare when compared to traditional store delivery planning? The main distinction is found in the level of control and efficiency. With DSD, the reins of product delivery and display at retail outlets remain firmly in the hands of the manufacturers and distributors, offering a unique advantage in the retail landscape.
Direct store delivery is a distribution strategy focusing on shipping products straight from the supplier or distributor to the retail store.
In the fast-paced world of modern retail and wholesale, businesses face several challenges:
Transitioning to a DSD model isn’t just eliminating the distribution center from the equation. It's a strategic shift requiring a combination of careful planning and innovative tools to optimize operations. When you use ORTEC, you’ll experience the difference of:
Transitioning to a DSD model isn’t just eliminating the distribution center from the equation. It's a strategic shift requiring a combination of careful planning and innovative tools to optimize operations.
Embrace a DSD solution and you’ll witness:
To improve their SAP transport management and beer logistics processes across eight breweries and 24 distribution centers, Brau Union Austria sought an SAP-integrated solution. With ORTEC’s SAP Add-On for Route Planning Software, they achieved an efficient cost structure, increased planning transparency and flexibility, and gained more control over a digitized logistics process.