Sep '23

Shaping the Future of Retail: DL DSD

Over the past few years, competition within the retail industry has increased tremendously. With the increase in competition and change in consumer demand, retailers are always searching for new ways to reduce costs. 

Retailers are searching for ways to optimize their supply chain through process improvement, with cost savings and efficiency as a top priority. 

Retailers looking to improve their bottom line through supply chain efficiency can find incredible value in Direct Store Delivery (DSD). 

The Direct Store Delivery (DSD) distribution model harmonizes suppliers and manufacturers directly with their retail outlets, avoiding added transportation costs by delivering to a distribution center first. 

A typical case

A relatable example for many is a retail store receiving multiple shipments from different suppliers with delivery trucks potentially arriving at the same time - with limited or no access to dock space. 

In this situation, truck(s) may be required to wait for long hours to offload their product, and the retail store faces additional charges for driver wait times. 

This frustrating and costly situation can be easily avoided by capitalizing on one of DL DSD’s core features, the Master Delivery Schedule (MDS). 

Master Delivery Schedule provides output in the form of a daily and/or weekly calendar for each retail store based upon inputs such as supplier constraints (Minimum Order quantity (MOQ), staff schedules/timing, manpower/equipment availability, truck size, FTL vs LTL, dispatch schedule etc.) and store constraints (staff/equipment availability, and timing) for seamless deliveries.

By leveraging the Master Delivery Schedule, DLT labs is able to minimize wait times and associated costs through the following implementations: 

1. Time slot allocation: specific time slots for each delivery truck are assigned based on the expected arrival time while considering unloading capabilities of the retail store. This ensures that trucks arrive at different intervals, avoiding congestion and unloading delays.
   
   
2. Load sequencing: sequence the order in which trucks are scheduled to arrive based on the volume and urgency of the deliveries. Prioritize time-sensitive, temperature-controlled or high-demand goods to be delivered earlier in the day, while spreading out less critical deliveries across the schedule.
   
   
3. Communication and coordination: foster clear and proactive communication between retail stores and delivery vehicles. This can include sharing real-time information surrounding arrival times, expected unloading duration, and advise of unforeseen delays. Such communication enables the retail store to manage resources efficiently and plan for smooth receiving operations.
   
   
4. Unloading efficiency: improve unloading efficiency at the store level by providing proper equipment, dedicated staff, and streamlined procedures; expediting unloading of goods and reducing the overall time required for each truck.
   
   
5. Collaboration with suppliers: collaborate with suppliers to align delivery schedules with retail store's operational hours and capacity. By coordinating delivery times with the store's peak and off-peak periods, managing the flow of goods is easier than ever.
   
   
6. Consolidated deliveries: consider consolidating deliveries from multiple suppliers or optimizing the routing of trucks to reduce the number of separate deliveries made each day. This can help minimize waiting times and maximize the efficiency of the receiving process.

By implementing these strategies and optimizing the Master Delivery Schedule, retail stores can significantly reduce waiting times for trucks, waiting charges, and improve overall operational efficiency.

Beyond the Horizon: A Remarkable Conclusion to Deep Learning DSD

DL DSD thrives from continuous self-learning, leveraging logged information to improve performance and support your business needs. DLT’s DSD platform enhances and optimizes your existing technology and systems, to improve your supply chain and reduce transportation costs.

Please find more information here.