The distribution process in supply chain logistics is a complex process. Even though it seems simple from the outside, there are a lot of parameters that have to be considered, like on-time delivery, theft and loss measures, and many more. Many products are stored in a warehouse and delivered at some later point in time, but for perishable goods like fresh flowers, fruits, and vegetables, speed is essential, so some of the suppliers prefer to skip distribution centers and deliver directly to the stores, this is known as DSD (Direct Store Delivery).
What is DSD?
In the Direct Store Delivery process, the retailers receive items directly from the supplier by eliminating the distribution center link. For goods that have a shorter shelf life, it is a useful and efficient option to choose.
Who prefers to use DSD?
DSD is popular with food and beverage companies, including bakeries, milk and dairy, frozen pizza, ice cream and many more. DSD is also common with oil & gas products, electrical and industrial supply, and auto supply.
Salient features of DSD
Direct store delivery helps in reaching the product to the store as early as possible. In the case of seasonal markets or during Christmas and New Year sales, direct store delivery is the best method of getting those products to market.
Expert handling of products
Products like fresh flowers require expert handling. Through DSD, manufacturers remove an extra stage in the supply chain, leading to having more control over the shipping process. The manufacturers may also get assistance from 3PL companies to handle the shipping of fragile and perishable products.
Reduction in costs
With DSD, a manufacturer can save storage and labor costs by 25% as there is no requirement to retain the goods at the distribution center.
Daily use products like fresh food, vegetables, and dairy products require daily replenishing. Some supermarkets deal directly with suppliers and use the service of 3PL to get the stock to their delivery point.
Select an expert 3PL company
3PL companies like 20cube warehousing can help you cope with the demand of the DSD sector. Both the supplier and the store would not have to bother about making investments in labor and equipment or building and infrastructure. 20Cube can help you handle operations of any scale due to its connectivity and network across the world and with that, their latest technology MyHub can blend with any system to provide the best results.