DSD 101: What is Direct Store Delivery?

Recently, our Gimme leadership team was invited to participate in the first EMBA (Executive Masters of Business Administration) New Venture Challenge at the Robinson College of Business. My CEO and I have been given the privilege of working with a small team of talented and motivated individuals pursuing their EMBA. During our work session last week, the team asked me a simple, but important question.

Can you help us better understand Direct Store Delivery? So, let’s take a detour from DEX, and focus on a better understanding of Direct Store Delivery or DSD.

What is Direct Store Delivery?

Direct Store Delivery is the term used to describe the process of delivering consumer product goods through a full-service distributor or driver. DSD allows for items that are date sensitive and have short shelf lives to be delivered directly to the grocery store by the supplier. This process bypasses the manufacturers distribution warehouse. DSD is efficient and makes sure high demand products are always on the shelves. Suppliers that utilize this model include companies that manufacture bread, snack foods, soda, and coffee. It is estimated that DSD accounts for over half of retail profits in the grocery industry.

DSD distributors and independent operators oversee the pricing and promotions within the account. Other value added services include:

  • Inventory and stocking of shelves

  • Real time store ordering

  • In-store merchandising

  • In-store forecasting

Direct Store Delivery is the ideal distribution model for supply chain management of perishable items, because it reduces the time it takes for the product to reach a national retailer or your independent grocer.

If you are a manufacturer or distributor specializing in DSD, and find the delivery process growing more challenging, join the conversation and tell us about it!

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