White Paper: Leveraging Automation To Improve DSD & Route AccountingSource: Quest Solution
Accuracy and productivity lead to profitability in direct store delivery (DSD) and route accounting operations. Revenue and cash flow will improve appreciably if DSD sales representatives can make just one more stop per day. Reducing invoice and inventory errors also reduces operating expenses by saving time for mobile and administrative staff, and by improving inventory availability. The following data highlights these opportunities:
- 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. Store managers, DSD sales and delivery personnel and their administrators at headquarters spend thousands of unproductive hours resolving these disputes, which are preventable through more accurate ordering and invoicing.
- 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 $6B 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 than inefficient firms for each delivery to largeformat stores and spend nearly twice as much time on merchandising.
Automating DSD operations is a proven practice for solving these problems and gaining the ensuing productivity and profitability benefits. Mobile computing applications prevent order-entry errors and help DSD staff manage inventory accurately and efficiently. But batch handheld computers and DEX connectivity are no longer enough to provide sustainable operational and competitive advantages. This guide will show how operations can be enhanced with additional applications, wireless data communication, on-site invoice printing and other enhancements to reduce operating costs and improve efficiency and profitability.