Direct Store Delivery
Encyclopedia
Direct store delivery is a key method of selling and distributing products for a large variety of industries, like food
, beverage, home personal care
products, and like wholesale
and distribution, oil
& gas
, service industries to name industries beyond consumer products.
DSD is a business process that manufacturers use to both sell and distribute goods directly to point of sale
s (PoS) or point of consumption (PoC) including additional product and market related services such as merchandising
, information gathering, or equipment service and bypassing any retailer or wholesaler logistics. A company that performs DSD does not send goods to any locations using any independent third party actor – neither an independent wholesaler, nor the retailer‘s own warehouses.
DSD is an alternative distribution model to centralized distribution and tends to be used extensively in the food industry for fresh products such as milk and bread where minimizing the number of days in the supply chain is a key concern. Similarly, DSD is used effectively for full truckload orders where bypassing distribution centers makes economic sense. DSD is also a favored approach when there is a strong requirement for supplier knowledge or service such as is the case with greeting cards for example. Having said this, there is pressure building up in the food supply chain to reduce the retailer's reliance on DSD and push more volume through centralized distribution channels.
The Standard Interchange Language
(SIL) acts as an interface standard for transferring data between proprietary store systems like DSD and PoS.
Food
Food is any substance consumed to provide nutritional support for the body. It is usually of plant or animal origin, and contains essential nutrients, such as carbohydrates, fats, proteins, vitamins, or minerals...
, beverage, home personal care
Personal care
Personal care or toiletries is the industry which manufactures consumer products used for beautification and in personal hygiene.-Subsectors:Subsectors of personal care include cosmetics and feminine hygiene....
products, and like wholesale
Wholesale
Wholesaling, jobbing, or distributing is defined as the sale of goods or merchandise to retailers, to industrial, commercial, institutional, or other professional business users, or to other wholesalers and related subordinated services...
and distribution, oil
Oil
An oil is any substance that is liquid at ambient temperatures and does not mix with water but may mix with other oils and organic solvents. This general definition includes vegetable oils, volatile essential oils, petrochemical oils, and synthetic oils....
& gas
Gas
Gas is one of the three classical states of matter . Near absolute zero, a substance exists as a solid. As heat is added to this substance it melts into a liquid at its melting point , boils into a gas at its boiling point, and if heated high enough would enter a plasma state in which the electrons...
, service industries to name industries beyond consumer products.
DSD is a business process that manufacturers use to both sell and distribute goods directly to point of sale
Point of sale
Point of sale or checkout is the location where a transaction occurs...
s (PoS) or point of consumption (PoC) including additional product and market related services such as merchandising
Merchandising
Merchandising is the methods, practices, and operations used to promote and sustain certain categories of commercial activity. In the broadest sense, merchandising is any practice which contributes to the sale of products to a retail consumer...
, information gathering, or equipment service and bypassing any retailer or wholesaler logistics. A company that performs DSD does not send goods to any locations using any independent third party actor – neither an independent wholesaler, nor the retailer‘s own warehouses.
DSD is an alternative distribution model to centralized distribution and tends to be used extensively in the food industry for fresh products such as milk and bread where minimizing the number of days in the supply chain is a key concern. Similarly, DSD is used effectively for full truckload orders where bypassing distribution centers makes economic sense. DSD is also a favored approach when there is a strong requirement for supplier knowledge or service such as is the case with greeting cards for example. Having said this, there is pressure building up in the food supply chain to reduce the retailer's reliance on DSD and push more volume through centralized distribution channels.
The Standard Interchange Language
Standard Interchange Language
The Standard Interchange Language is a data interchange language standard developed by the Food Distribution Retails Systems Group for the interchange of information between software programs...
(SIL) acts as an interface standard for transferring data between proprietary store systems like DSD and PoS.