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Direct Store Delivery (DSD)

GMA formed the Direct Store Delivery Committee to study issues relevant to Direct Store Delivery (DSD) companies. The committee, comprised of industry leaders in DSD categories, has conducted several projects to analyze how the DSD system can drive growth, profit and productivity for DSD companies and their retail trading partners.

The DSD Committee has published several reports tracking the performance and value of the DSD system. A study published in 1999 specifically tracked the performance of the top 20 grocery categories and suppliers over the past five years and provided strong evidence that DSD companies offer tremendous opportunities for grocery retailers.

In June 2002, GMA released the results of a study exploring the out-of-stock issue for DSD categories in the grocery channel. The study also aimed to understand shoppers' loyalty and shopping behavior when encountering a DSD product out-of-stock, determine root causes and develop solutions to reduce DSD out-of-stocks. The executive summary can be downloaded at no cost from the website, under the publications section.

In June 2001, the committee formed a DSD E-Commerce Task Force to focus on critical e-commerce issues that impact the food and consumer product industry's direct store delivery (DSD) system. The task force published a white paper in March 2002 documenting the seven operational processes of DSD and suggested e-commerce opportunities to facilitate each of these processes and improve daily operational practices for DSD. The Task Force and broader DSD Committee will be testing two of these opportunities through pilot work with Trade Dimensions and NACS in winter 2002/03.

In 1999 - 2000, thirteen members from the committee conducted a pilot to develop an industry Extranet solution to facilitate scan based trading via the Internet. The Extranet housed up-to-date product, pricing and promotion information needed to pay for DSD product off daily point-of-sale scan data. A report was published in July 2000 documenting the benefits of using an e-commerce solution to facilitate a complex business process.


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