Ensure On-Shelf Availability for DSD Products
Key DSD categories are associated with more frequent trips per shopper and higher absolute dollar value sold. Among the top 7 most frequently shopped categories, 5 are DSD-dominated, and bread, milk and carbonated soft drinks are so significant they drive shopper trips to the store.
Supermarket operators are challenged to meet shopper expectations in high-awareness DSD categories, where the out-of-stock problem is frequently magnified. Magic’s Computer Generated Ordering (CGO) can vastly improve performance on key items and help retain those profitable trips.
Solve the “Sunday Problem”
Leading retailers recognize that the consequences to stakeholders are too great to leave the re-ordering process solely to the vendor’s discretion. Reliable on-shelf availability of high-demand supermarket items is just as important when products are direct-store delivered as when they are distributed via the internal warehouse.
Daily variations in service levels are of particular concern to grocers. Sunday afternoon service gaps hit top DSD categories especially hard, with item availability falling as low as 91.3%, while promoted item availability drops to an average of 85.1%.
Industry research (GMA, Roland Berger) indicates that increasing DSD on-shelf availability can increase sales by as much as 2.9%, the equivalent of $75,000 annually for a typical supermarket.
When ordering DSD products is implemented in supermarkets, we have documented improvements in DSD on-shelf availability, reduced deliveries, and improved service levels to the stores.
The Best Solution for Receiving
Itasca’s founders pioneered better automation in DSD receiving in the 1990’s. Today, this technology has more installations for both spot-sell and pre-sell Direct Store Delivery vendors than any other software provider. While under multiple different names today, the underlying technology is the same and is also an optional part of the Itasca Inventory Optimization solution.
Combined with a CGO solution that’s second-to-none, Itasca DSD Receiving allows retailers to utilize the same database that they’ve taken time to ensure is accurate for the automated ordering process. The synergy that emerges here reduces workload on IT departments who support store applications, and reduces confusion at store level as the combination of solutions often eliminates handhelds in the stores.
Itasca DSD Receiving improves the efficiency and accuracy of processing DSD vendor invoices and credits, while stopping unauthorized merchandise from entering the store. Multiple receiving methods allow retailers to tailor the receiving process based on the type of vendor, their EDI capabilities and their historical accuracy and performance.
Learn How. Let us show you why you cannot overlook this compelling opportunity to strengthen your sales and profit performance by ordering, and receiving, DSD items with Itasca.