Delivery by self-driving cars or drones is taking over the traditional means of delivery to cut down on supply chain expenses. According to a report, the drone package delivery market is expected to reach USD 2.1 billion in 2023.
Implementing this channel of distribution is the next step to what retailers can immediately adopt to improve and optimize the supply chain, which could decrease cost on logistics and improve sales numbers. The Direct Store Delivery method is about circumventing the distribution plan and creating a channel between the retailer and manufacturing. Agri-food production plants already use this.
Why The DSD Model Works
- Retailers control means of procurement and can avoid a supply shortage. According to a report, 40% of companies consider delivery performance as an important indicator when monitoring the supply chain.
- Removes the cost of middlemen and improves margins.
- Makes way for better customer experience, understanding demands, and being responsive to trends.
- Handle merchandising means and effectiveness.
Why Your Business Needs DSD
- Better relationships with retailers due to direct sellers working as representatives.
- Retailers make 80% sales from 20% of products under FMCG. DSD helps control turnover.
- Control customer turnover to competitors.
- Get a better understanding of product procurement, competitor changes, and external factors.
Is DSD Right For Your Business
- DSD can bolster your business under the following criteria:
- Most of your clients are small retailers needing frequent stock replenishment.
- Order volumes optimization.
- Delivery time is sensitive to perishable goods.
- High-value products requiring special security.
- Merchandise related product.
How the DSD Model Can Be Implemented
Managers need to assess technological, HR and financial status to answer the following :
- What technological solutions can improve the current ERP?
- Can employees sell and deliver?
- Cost for the long term repeated delivery.
- Are your clients open to changes?
Creating An Integrated Solution
Connecting technologies in the business can lessen data discrepancies. DSD needs a solution with moving components as trucks and warehouses. The solution should keep the sellers and managers in the loop to gather real-time information and update the information to ensure speedy delivery and efficient communication.
Determining Employee Roles And Responsibilities
The tasks of employees should be rightly defined to assign the right roles.
- Sales reps
Employees are responsible for studying, selling, taking orders, etc. They should have support from marketing, incentives, and have real-time stock information to negotiate and increase business visits.
- Van sellers
This plays an important role in DSD. These employees should be able to take over sales reps’ tasks, follow optimal routing and traffic to reduce logistical costs through GPS.
- Supervisors & managers
Managers control the sales from offices by ordering deliveries, accounting stocks, monitoring employee performance, collecting data about purchasing to improve marketing, launch products, and monitor stock.
Conclusion
DSD is a modern distribution line that can improve requirements, implement best practices, and remove non-productive actions.
Book your free demonstration of Orbis now to benefit from an effective DSD solution.
