Direct Store Delivery (DSD) is a distribution model where suppliers deliver products directly to retail locations, bypassing centralized distribution centers. DSD offers flexibility and speed but can also introduce inventory visibility gaps, invoice errors, and operational inefficiencies that reduce profitability.
ReposiTrak helps retailers modernize DSD processes by combining automation, data synchronization, and transparency within its Scan-Based Trading (SBT) platform.
Common Challenges in Traditional DSD Programs
Retailers managing DSD often encounter challenges that affect both profit margins and supplier relationships:
- Limited visibility into inventory and sales data: Disconnected systems lead to blind spots and missed insights into product performance.
- Inventory inefficiencies: Overstocks of low-moving items and out-of-stocks on top sellers lead to lost sales.
- Extended check-in times: Manual backdoor processes consume labor hours and slow replenishment.
- Invoice discrepancies: Mismatched pricing or quantities cause disputes and payment delays.
These inefficiencies collectively increase costs, reduce productivity, and make collaboration more difficult.
Modernizing DSD with ReposiTrak Scan-Based Trading (SBT) 2.0
ReposiTrak’s SBT 2.0 addresses the operational inefficiencies of traditional DSD by automating key workflows and establishing shared accountability between retailers and suppliers.
Key Improvements with SBT 2.0:
- Supplier-owned inventory: Suppliers maintain ownership until point-of-sale, reducing financial exposure for retailers.
- Cloud-based pricing and cost management: Both retailer and supplier work from a single source of truth for item-level pricing and authorizations.
- Automated invoicing: Clean, error-free invoices are generated directly from verified POS data.
- Out-of-stock prevention: ReposiTrak’s analytics and expert monitoring reduce shrink and improve shelf availability.
Benefits of a Modern DSD Model
By integrating DSD with ReposiTrak’s SBT platform, trading partners achieve:
- Reduced shrink and invoice discrepancies
- Faster receiving and replenishment cycles
- Improved cash flow and payment accuracy
- Increased sales through better on-shelf availability
- Greater supplier efficiency and route optimization
How DSD Works with Automated Ordering
Pairing Direct Store Delivery with ReposiTrak’s Automated Ordering solution creates a seamless, end-to-end inventory ecosystem.
- Automated Ordering ensures that replenishment is based on real POS data.
- DSD integration ensures that the right products are delivered to the right stores, at the right time.
FAQs
What is Direct Store Delivery (DSD)?
DSD is a distribution model where suppliers deliver directly to stores, bypassing warehouses, often used in perishable or high-velocity categories.
How does Scan-Based Trading improve DSD?
SBT automates data sharing, invoicing, and ownership transfer, reducing disputes and improving inventory accuracy.
What are the key benefits of DSD automation?
Faster check-in, fewer invoice discrepancies, and better product availability through shared visibility.
