By George Anderson
A new study, Unleash the Power of DSD: Driving Supply Chain Efficiencies and Profitability, conducted for the Grocery Manufacturers Association (GMA) by Willard Bishop Consulting concludes that direct store deliveries (DSD) can be made more efficient with increased coordination between retailers and suppliers primarily aimed at improving the backdoor check-in process.
According to the key findings of the study, DSD route personnel spend between 20 and 27 percent of their time stocking and merchandising stores in small- and large-box locations. Unfortunately, the study concludes, DSD suppliers spend nearly the same length of time waiting to be received and processed through the back door. One result of backdoor delays has been that suppliers have had to hire pre-sellers and extra merchandisers (an additional cost) to support retailers.
By automating the check-in process and limiting delays through improved coordination, best-in-class trading partners were able to have DSD personnel spend 23 percent more time focused on in-store merchandising.
"GMA's study shows that the DSD system can be far more efficient. By working together to streamline the system, retailers and manufacturers alike can dedicate more time to in-store merchandising, improving shelf-replenishment rates, customizing store-by-store assortments - leading to increased sales," said Karin Croft, senior director of industry affairs for GMA in a released statement.
Moderator's Comment: What is the importance of GMA's latest study? Where do you see the greatest opportunities for improvement in the area of direct store deliveries? Will DSD become a more or less widely used form of distribution in the future? - George Anderson - Moderator