DSD And CD Delivery Methods Drive Change Within The Supply Chain

July 2012 Integrated Solutions For Retailers

By Kevin Permenter, research associate, Aberdeen Group

Direct delivery methods are being utilized to speed up the supply chain and be more responsive.

In a recent retail logistics survey, 49% of retail and consumer markets companies are utilizing direct delivery methods (either direct-to-store [DSD] or consumer-direct [CD]). The rise of direct delivery models is in response to the overwhelming pressure for retail organizations to increase their supply chain speed and responsiveness. In fact, in the same survey the top pressure (67%) driving strategy decisions was the need to improve supply chain velocity. Supply chain velocity is a critical matter for the fast-moving consumer markets supply chains. Case in point, the items sold by many of these companies have a short shelf life, either due to high usage (e.g. toiletries or cleaning products) or their perishable nature (e.g. dairy, meat, vegetables).