Re-engineering DSD Saves Time and Money

In a recent Honeywell report, it was found that companies could save millions of dollars by improving the way products are ordered, sold, delivered and merchandised in Direct Store Delivery (DSD) operations.

The report analyzed feedback from 350 C-level consumer goods executives and directors from around the world, finding that 49 percent of organizations felt as though transportation costs have severely impacted their profit margins in the past year.

However, organizations that have completed process evaluations to improve their DSD processes have cut approximately $734,000 annually.

In addition, approximately 20 percent of those surveyed experienced at least $1 million a year in cost-savings simply by re-engineering their DSD processes.

Based on the report, the top five areas for cost improvements are:

  • Fuel and petrol
  • Merchandising
  • Delivery receiving/check-in
  • Delivery
  • Payment procedures

In addition to saving money, re-engineering DSD processes also saves a lot of time. Because of the huge cost and time savings, approximately 60 percent of respondents view DSD as a key to their company’s businesses strategy.

View the infographic below or learn more about the Honeywell survey here.

Screen Shot 2014-06-03 at 5.55.26 PM