How Efficient Is Your DSD?

Over 4,000 industry professionals are expected to attend Canada’s National Bakery Showcase 2010 in Toronto next week. Aside from the latest in proof & bake ovens and thaw & serve products, baking and baking supply companies of all types and sizes will be looking for ways mobility technology can deliver better efficiency to their enterprise. The impact is especially strong for route accounting organizations, where mobile workers frequently interact with customers. Fact is, accuracy and productivity lead to profitability in direct store deliv ery (DSD) and route accounting operations.

In the grocery channel alone, DSD represents 24 percent of unit sales and 52 percent of retail profits1. Revenue and cash flow improve measurably if DSD sales representatives make just one more stop per day. Reducing invoice and inventory errors also reduces operating expenses by saving time for mobile and admin istrative staff, and by improving inventory availability. Some of the challenges for the industry include:

• There are discrepancies on 10.5 percent of DSD invoices issued to small-format retailers, and 15.4 percent to supermarkets and other large-format stores.

• The average out-of-stock rate for DSD items is 7.4 percent, but jumps to 13.1 percent for promotional items.

• Out-of-stocks result in $6 billion in lost sales annually.

• The average supermarket can reduce DSD out-of-stocks by 2.9 percent and increase annual revenue by $75,000.

• Automated check-in processes can reduce DSD receiving time by 60 percent.

• Efficient DSD suppliers spend 13.8 fewer minutes for each delivery to large-format stores and spend nearly twice as much time on merchandising than inefficient suppliers.

Automating DSD operations is a proven practice to help solve these problems and gain the ensuing produc tivity and profitability benefits. Mobile computing applications can help prevent order-entry errors and assist DSD staff in managing inventory more accurately and efficiently. Many companies are using batch handheld computers and DEX connectivity, but in today’s world, this is not enough to provide sustainable operational and competitive advantages.

You can see the Zebra white paper on improving DSD and route account effectiveness here.

Zebra will jointly exhibit at this event with Motorola displaying a wide variety of solutions to optimize bakery process efficiency in production, operations, and product delivery.  At this event, the two companies will be exhibiting mobile technology solutions to support the market’s direct store delivery and other related activities.

If you are at the show, stop by booth #’s 1011 and 1013 to see the Zebra and Motorola joint solutions.

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