Explore The Benefits Of Direct Store Delivery
The supply chain can disappoint at any time. It is the goal of every manufacturer that his product gets to the final consumer as fast and possible and as intact as it was packaged. However, as the product would be changing hands, it is not always the case that the goods would get to the final consumer as soon as possible or as intact as it was packaged. In fact, the product price is going to rise and the manufacturer has to look for ways to cut some costs so as to cater for the inevitable increment. That’s the problem a producer utilizing the normal supply chain faces. This is the reason many producers opt for direct store delivery.
Direct store delivery is basically the delivery of goods to the retail outlet directly from the manufacturer. This system leaves the distribution center out of the equation. This system is largely preferred for the fast transfer it gives to the distribution of goods. For instance, the farm does not have to work with a wholesaler who finds a storage center to keep the product until he can get demand for it. The farm would get the grocery store’s order and delivery appropriately.
The benefits of direct store delivery are highlighted below.
First, it helps in preserving perishable high volume products fresh. Food items like groceries, milk, dairy products and others have critical freshness requirements and thus have to taken to the grocery store from the farm. It would be at loss to a retailer to be known with stale products. More, as no one would buy the stale goods, the slow distribution process would have led to massive loss for him.
Second, fragile goods are kept secure with the fewer hands distributing it. Distributors may not handle goods carefully and appropriately and thus reduce the value of the product before it gets to the final consumer. Fragile goods like glassware, ceramics and others have to be carefully handled and they can hardly be trusted to get to the consumer intact because of the changing of hands and warehouses before it gets stocked in a retail outlet.
Third, price is easily controlled with fewer persons in the supply chain. It was discovered that the supply chain alone adds 25% to the normal prices of products. This percentage is shared among transportation, warehousing, profit and labor. However, with direct store delivery, goods can be taken to the retailer directly from the manufacturer and this would invariably reduce the cost price of the product to the final consumer.
Fourth, with products which require training before handling, direct store delivery is very helpful. By this, the manufacturers of such product can easily meet with buyers and put them through on how to operate the devices. This is not the case with the supply chain system where the distributor and the other persons may not even know how to handle the product. Having the manufacturer’s help is very advantageous to both the retailer and the buyer.