Direct Store Delivery (DSD) - Definition & Meaning
What is Direct Store Delivery (DSD)?
Direct Store Delivery (DSD) is the process in supply chain management wherein the product is delivered from manufacturing plant directly to the retailer. This Model is extensively used in the food industry for perishable products such as milk products and dairy items.
There are different value added services provided along with DSD to improve sales show of them are listed below
• Shelf Inventory management
• Ordering
• Promotion Execution
• In store Merchandising through Display shelf’s
Advantages of Direct Store Delivery are as follows
• Better Inventory management as the supplier representative of the product frequently visits the store.
• Reduced cost in labour expense involved in reordering and merchandising as it is taken care by the supplier representative
• There is savings in cost as the cost involved with Inventory management and warehousing is avoided. Also the labour cost associated with warehouse is eliminated
• Delivery time or Speed to Market is reduced as the product is directly supplied to Point of sales.
Types of DSD Models
They are broadly classified into two types
1. 2-Tier DSD Network
2. 3-Tier DSD Network
These are the two types of DSD models.
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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