Direct to Store Delivery transactions allow suppliers to get their product on retailers’ shelves as quickly as possible. As its name indicates, Direct to Store Delivery (DSD) is a method of delivering product straight from supplier to retailer, instead of sending product to distribution centers.
It is common for over one third of a grocer’s merchandise to be delivered via DSD. These items typically include fresh foods, some cosmetics, dairy, and other products with a measured shelf life. In convenience and drug stores, over half of merchandise may be directly delivered.
Purchase orders are not sent to most DSD suppliers. In some cases sales reports may be sent by the store through EDI. More commonly, product deliveries are scheduled based on monitoring of the in-store inventory by either the supplier or the store manager.
Invoices are still required and are typically sent through EDI transactions. The EDI invoices must conform to each retailers specific compliance requirements. As always, accurate invoices are necessary to ensure prompt payment.
Choosing the right EDI software is essential. Call us anytime to learn more about how CovalentWorks web based EDI software makes it easy for DSD suppliers to get paid on-time, every time.
Direct to Store Delivery Transactions by Steve Brewer