What Is Direct Store Delivery?
Direct store delivery (DSD) is a distribution model where the manufacturer or supplier delivers products directly to a retail store, bypassing the retailer's distribution centre. It is common in the grocery, convenience and pharmacy sectors, particularly for perishable goods.
Key Points
In brief:
- Supplier control: the supplier handles transport, inventory and often merchandising, and new products can reach shelves faster.
- Retailer benefits: store staff spend less time stocking shelves, and frequent deliveries mean less backroom inventory.
- Challenges: many stops, strict receiving windows and the need for supplier and retailer systems to share accurate data.
- DSD vs central distribution: DSD suits high-turnover, fragile or perishable goods, while central distribution often suits non-perishable items.
For a full guide, read our full guide to direct store delivery and its pros and cons.
Frequently asked questions
Central distribution involves shipping products to a retailer's large warehouse (distribution centre), where they are stored before being sent to individual stores. Direct store delivery skips this warehouse step, moving goods straight from the supplier to the retail store shelf.