DSD (direct store delivery)
Quick answer
DSD (direct store delivery) means the supplier delivers goods straight to the store, without passing through the retailer's central warehouse.
Key takeaways
- Short shelf-life or fast-moving products: bread, dairy, drinks, snacks
- Retailers without a central warehouse for that category
- When the supplier wants control of the shelf and replenishment frequency
What DSD is
DSD (direct store delivery) is the model where the manufacturer or distributor brings goods directly to the store shelf, with its own or contracted vehicles and drivers. The alternative is delivery to the retailer's central warehouse, from which the retailer redistributes to stores (sometimes through cross-docking).
When it is used
- Short shelf-life or fast-moving products: bread, dairy, drinks, snacks
- Retailers without a central warehouse for that category
- When the supplier wants control of the shelf and replenishment frequency
How it is measured
Cost per drop = transport costs / number of deliveries. Average drop value = value delivered / number of deliveries. Also tracked: order fill rate, in-store stockouts and returned goods. Cost per drop should be compared with the margin on the average value delivered.
Common mistakes
1. Drops that are too small. If the average drop value is below its cost, that store makes a loss.
2. Fixed routes, variable demand. Delivering at the same frequency regardless of sales lets goods age.
3. Missing proof of delivery. Without store confirmation, invoicing disputes arise.
How it shows up in an operations platform
CRMconnect has an order management module (OMS), which checks orders against available stock, and a stock management module per item and warehouse. Agent visits and orders are recorded in Sales Agent Management.
Real-world example
A dairy distributor delivers directly to 40 stores a day with 5 vehicles. Daily transport cost is 2,000 RON, so 50 RON per drop. A store ordering 300 RON at a 15% margin brings 45 RON, below the cost of the delivery.
Last updated:
Frequently asked
What does DSD mean?+
DSD means direct store delivery: the supplier delivers goods to the store with its own means, without the retailer's central warehouse.
What is the difference between DSD and cross-docking?+
In DSD, the supplier takes goods directly to each store. In cross-docking, goods arrive at a retailer transfer point, are sorted by store and shipped on without long storage.
What is the difference between DSD and van sales?+
DSD describes the physical route of goods, straight to the store. Van sales describes the selling method, from a vehicle. They can coexist but should not be confused.
What are the advantages of DSD?+
A better-stocked shelf, fresher products and more supplier control. The drawback is higher logistics cost and route complexity.
Where CRMconnect fits
Where CRMconnect helps
Sales Agent Management records each agent's calls, visits, quotes and opportunities and aggregates them into reports per agent, team or area.
Related terms
Van sales
Van sales is the model where the agent carries goods in a vehicle and sells and delivers them in the same visit, issuing the document on the spot.
SalesPreseller
A preseller is an agent who visits customers and takes the order on the spot, while goods are delivered separately, usually next day, by another driver.
LogisticsCross-docking
Logistics operation where goods flow through the warehouse without storage - directly from receiving to shipping.
SalesRoutes and visit frequency
Planning visits by potential and geography so each customer is visited at the right interval with minimum time lost in traffic.