Direct store delivery (DSD) is a crucial logistical approach in which products are transported directly from the manufacturer or distributor to the retail store. DSD ensures that stores consistently have the right products in stock to meet customer demands promptly. Interestingly, within DSD, the Van Sales sector is showing significant promise. It is projected to experience substantial growth, with predictions indicating that it will surpass the US$ 200 billion mark by 2029 at a compound annual growth rate (CAGR) of 3.9%.
Further research shows that Europe is currently the largest market for van sales, with 56% shares. The demand for van sales has risen due to the rise in e-commerce shopping, which increased the need for last-mile deliveries of commodities. Europe depends on road transportation, which accounts for 75% of freight movement inland. To enhance the capabilities of these advanced systems, companies are leveraging AI.
Artificial intelligence (AI) is revolutionizing DSD.
By incorporating AI into DSD, we have made digital solutions intelligent, efficient, accurate, and sustainable. Features like an AI-based recommendation engine offer your sales or delivery reps the right SKUs to promote at the end of every retail store visit. These AI-powered DSD solutions promise to enhance sales and profitability. These solutions can help to:
1. Optimize routes
Optimize DSD routes by considering traffic conditions, delivery windows, and product availability. It can help to reduce delivery times and fuel consumption. Including GPS tracking, maps, and location features helps the company to track real-time locations of field force agents, ensuring maximum productivity.
2. Predict demand
Utilizing AI to process sales data can help predict the demand for various store products. An in-depth information analysis ensures that stores have the right products to meet customer demand.
3. Manage inventory
Direct Store Software can help manage and track inventory levels at each store to prevent out-of-stock and reduce waste for goods with a shorter shelf life span.
4. Track assets
These software come with advanced tracking abilities, which help identify the location of assets such as trucks and pallets. This information can improve efficiency, track sellers, and prevent theft.
Ivy Mobility stands out as a leading provider of AI technology in the CPG Direct Store Delivery (DSD). With a rich history as a pioneer in Consumer Packaged Goods technology, Ivy provides a comprehensive range of technological solutions harnessing AI to enhance DSD operations. Our enterprise-grade solution is designed to elevate DSD operations for efficiency, precision, and sustainability.
Transforming Delivery and Sales with Ivy Mobility
As a regular practice, van sellers deposit the payments from a nearby cash deposit machine at the end of the day. However, these accounts are manually calculated the next day or consolidated at the end of the week. It leads to accounting miscalculations or the need for more cash. To avoid this, Ivy Mobility developed an automated end-of-day reconciliation that helps field force agents reconcile accounts at the end of each day. Here are some specific examples of how Ivy Mobility improved DSD operations for our existing clients :
- A beverage company uses Ivy Mobility solutions to optimize its DSD routes and could reduce delivery times by 10%.
- A grocery retailer uses Ivy Mobility solutions to predict product demand at each store. The retailer could reduce its out-of-stocks by 5% and increase sales by 2%.
- A food manufacturer uses Ivy Mobility solutions to track the location of its trucks and pallets. The manufacturer improved its efficiency by 15% and reduced theft by 20%.
Above are a few examples highlighting how Ivy Mobility solutions can elevate Direct Store Delivery (DSD) operations. As AI continues to advance, Ivy Mobility solutions will become even more robust and flexible.
Schedule a demo with us to see our solutions in action.
Published by September 26, 2023 by Ivy Mobility