Consumer goods distributors must rely on various methods to get their products to retailers. They must also look for new and better ways to accomplish this. Many distributors choose to deploy a direct store delivery solution because of this. It seems sensible to use DSD systems. It introduces a new way of marketing and delivering goods. It enables a distributor to form a stronger bond with retailers and understand the challenges they experience in selling various items. However, distributors must realize that simply installing a DSD system is insufficient.
Here are six tips that distributors should follow to ensure the success of DSD systems.
A DSD solution's success is not exclusively dependent on the DSD software. Distributors must also ensure that all of the software's requirements are met. This means that every system and process should be as efficient as possible from inception to finish. Distributors should be able to load trucks swiftly and get them off the dock. This will allow the drivers to spend more time with retailers daily, resulting in greater sales and stronger connections. The distributor should also focus on increasing the size of its truck fleet and expanding into new physical warehouses. There are more sales when there are more trucks—the more warehouses that are built, the more drivers can focus on individual retailers.
Improve The System
Wages must increase every year, and fuel prices must rise as well. As a result, distributors need to optimize their usage of these resources. Route optimization and inventory optimization in each truck are two of the most effective ways to do this. A strong DSD system will give you excellent route visibility, but it's up to the distributor to ensure each truck has the proper amount of inventory. Each truck should have enough inventory to allow merchants to see the wide range of products offered by the distributor, allowing drivers to up-sell and cross-sell.
However, inventory numbers must be estimated carefully to allow drivers to refill all products that a retailer already stocks, or major sales could be lost, and retailers could feel unsupported. In a nutshell, it's a delicate balancing act that must be polished. There hasn't been an AI-powered solution to automate the procedure until now.
High-quality DSD systems will provide excellent sales data. The route or sales manager can look over route schedules, KPIs, sales data, and other information. They should use this data to create a solid daily strategy for each sales representative to know what they need to focus on for the day. It's also essential to provide training for any new products that are added to the inventory and detailed information on any new customers that will be on the route. When each person leaves the warehouse with a defined plan, they will know how to approach different retailers and will sound informed about the products, with the capacity to determine which products would best fit into a store.
Training on the DSD Solution
The DSD solution software is quite effective. It can assist distributors in transforming their businesses and opening up new sales opportunities that were before unimaginable. However, this is only possible if the software is used correctly. Drivers, sales reps, and sales and route managers need a thorough understanding of how the software works. The most efficient approach for distributors is to provide extensive training. This training could either be done in-house or outsourced. In any case, everybody who potentially profits from the software's data and tools should know how to use it. When the software is updated, there should be periodic re-training or training.
Integrations with Other Systems
DSD software, like any other business software, can provide helpful information. However, when this data is shared and integrated with other systems, such as the ERP and any accounting system, it is most valuable. The integration will enable two procedures. First, it will provide leadership with a greater understanding of its operations. They will pinpoint inefficiencies and areas where extra investment is required. Second, integrating the DSD with the accounting system will make the sales representative and the accounting department much easier. Everyone will always be on the same page and have access to all necessary information.
A DSD software solution enables distributors to reach new markets. The appropriate solution will equip them with all of the tools they need to take their business to the next level of profitability.
Contact NCS Suite today to learn more about how a DSD solution can help your company increase profitability and reduce customer attrition.