Why does direct store delivery matter?
Direct store delivery removes a warehouse step, which can reduce handling costs, shorten the time from production to shelf, and keep fresh or fast-moving products in better condition. For suppliers, DSD gives direct control over shelf presentation and stock levels. For retailers, it reduces the need for storage space and central warehouse capacity, although it requires careful coordination of many small deliveries.
How does direct store delivery work in logistics?
The supplier agrees delivery days, windows and store-level order quantities with each retailer. On the agreed day, the supplier’s vehicle loads the products for multiple stores and follows a fixed route. At each store, the driver unloads the goods, checks stock, rotates products on the shelves and records the delivery, often through a handheld device. Invoices and delivery confirmations are sent to the retailer, and the supplier adjusts future orders based on sales data.
Industries that use direct store delivery
- Food and beverage distribution
- Bakery and fresh produce supply
- Dairy and chilled products
- Snacks, confectionery and beverages
- Drugstore, health and beauty products
- Newspapers, magazines and media
- Pet food and pet supplies
- Household cleaning and personal care products
- Tobacco and convenience store goods
- Pharmacy and medical supply to local outlets
Example in practice
A bakery in Ljubljana, Slovenia supplies fresh bread and pastries to 25 convenience stores across the city and nearby towns. Every morning, the bakery’s own van loads the products for each store, sorted by the store’s order sheet. The driver follows a fixed route from Ljubljana city centre to Kranj, Domžale and Vrhnika, unloading at each shop between 05:30 and 07:30. At each store, the driver removes the old stock, places the fresh products on the shelves and records the delivery on a handheld device. The bakery sends the delivery records to its accounts team, and the next day’s order quantities are adjusted based on the previous day’s sales.