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"With the
SAP for Retail solution portfolio, grocers can efficiently support the role of a central perishables buyer. In addition, the solutions enable management of supply relationships in mass through a
direct-store delivery model."
Source : SAP
Take the Direct Road to Success with Seamless DSD
Store Delivery is also known as :
Direct Store Delivery,
Direct Store Delivery Software,
Direct Store Delivery System,
Direct Store Delivery Systems,
in Store Delivery,
Retail Store Delivery,
Store Delivery,
Store Delivery DSD,
Store Delivery Business,
Store Delivery Model,
Store Delivery Route,
Store Delivery Schedule,
Store Delivery Service,
Store Delivery Software,
Store Delivery System,
Store Delivery Systems,
Store Delivery Processes,
Store Delivery Distribution,
Software Store Delivery,
Store Delivery Network,
Method Selling Distributing,
Store Delivery Working,
Store Delivery Group,
Store Delivery Variances,
Store Delivery Losses,
Store Delivery Application,
Store Delivery Supplier.
As CPG and retailing move rapidly toward a demand-driven future, it’s vital to keep in
mind that accurate forecasting will be your key to superior performance –– and that the
data driving your forecast and your response starts at the store. DSD companies can gain
a clear edge with a seamless system, because information from the field is immediately
reflected throughout your company, with no data inconsistencies, mismatches or latency.
IN A DEMAND-DRIVENWORLD, KNOWLEDGE OF
WHAT HAPPENS INSTORE COMES TO THE FORE ––
and the more important this timely point-of-sale
information and quick, appropriate response to
it becomes, the greater the advantage that wellequipped
DSD suppliers will enjoy.
It’s no secret that DSD gives today’s CPG
company superior control over the consumer
/ product interface.
If you’re in the store, merchandising your
own product, building your own displays,
proactively working through problems, challenges
and opportunities at point of sale, you
have a decided advantage over companies that
distribute through the retailer’s warehouse.
You can better control what you product
looks like to the shopper than if you depend
on the retailer to move it out of the backroom,
stock the shelves, face up the product,
build your displays and keep them refreshed.
DSD is tailor-made for the demand-driven
supply network environment, because accurate
demand forecasting is critical to superior
performance –– and store-level data is critical
to the forecast.
If you’re correctly managing the information
coming out of the store, you not only know
what you delivered to the store, but you know
what the sell-through is because you know what was in the backroom the last time you
were there.
You know what you sold and delivered this
time, and you can track and calculate your
run-off, you can look and factor in upcoming
promotional events and the history of those
kinds of events, and you can see what a similar
promotion did somewhere else.
In short, because the DSD company knows
what happens in the store, it can enjoy a
much better perspective on what is happening,
or needs to happen, along the entire supply
chain.
But once this information is obtained by your
route people, whether and how fast you can
move it back up to those with a need to know
–– everyone in your company who is actively
involved in serving the customer and the consumer
–– determines your competitive success.
Why? The faster your information on store
conditions gets to the right people, the better
your response time, speed to shelf, in-stock
levels, new item performance, promotional
success –– in short, the better you are able to
satisfy the retail customer and the consumer.
That’s why, if you are running SAP as your
ERP system, SAP’s Mobile Direct Store
Delivery is another powerful advantage for you.
Seamless integration means that any time you update anything anywhere in the system, every
other part of the system knows it –– there is just
one set of data, and the whole system points to it.
So when you, as a DSD supplier, put product
on a truck and dispatch it to the market, all
your warehouse information is updated ––
immediately. You’re not dispatching on a different
server or a different place; you’re pulling
product out of the warehouse and updating
your back-end system of record –– immediately.
In short, with SAP there is no latency of information.
And at the end of the day, when the
drivers come back bringing information on
what was ordered, what was sold, what was
invoiced and what was collected, and settle it, it
is posted to your general ledger, route by route
–– immediately.
You don’t have to wait for all of your routes to
close before sending batches of information
into the back-end system. You don’t have to
wait to drain an error queue before you can
send corrected data to the back-end system.
Knowing how vital store-level information is in
a demand-driven world, SAP has made a deep
commitment to mobility for companies from
largest to smallest. Our pilot customer is
Empresas Polar, the largest consumer products
and the largest food company in Venezuela (see
box for results to date). At the other end of the
scale is Absopure Water Co. (Detroit), a small
DSD distributor of bottled water to homes and
offices. When this small company is completely
rolled out, some 60 routes will be covered.
Find out more! Call SAP for DSD –– today.
SEAMLESS DSD: BUSINESS TRANSFORMATION CASE STUDY
A $2 billion Venezuelan CPG company, Empresas Polar has posted impressive results since
upgrading to SAP for Consumer Products, including an increase in sales activity averaging
195% on 60% of its SKUs.
EMPRESAS POLAR IS ONE OF VENEZUELA’S
LARGEST PRIVATE FIRMS, serving over
250,000 customers directly.
Recently, its food division, Alimentos Polar,
the country’s largest food producer and distributor,
concluded it needed to overhaul its
go-to-market strategy. Inflation was increasing
at double-digit rates, raw materials costs
were rising, and Polar faced serious margin
pressure due to government price controls.
Sales people in different divisions used dissimilar
practices and reporting tools that
required massive coordination efforts. Rising
demand and inadequate analysis / reporting
functionality had pushed stock-outs to 25%.
Deciding it needed a DSD solution to support
its go-to-market strategy, Polar chose
SAP for Consumer Products solutions
because they met its immediate and future
needs, integrated seamlessly into its SAP®
infrastructure, and ensured low support costs.
Within 16 months, the full Alimentos Polar
sales force was serving its 45,000 customers
from 47 locations using only SAP software,
with DSD software running on 680 devices.
The software also helps Polar streamline
order processing, reduce errors, improve
sales force productivity, and ensure next-day
delivery ––improving customer satisfaction.
Integrated processes ensure that workers use
the same information, while enhanced
inventory visibility and daily reports help
Polar proactively reduce stock outs.
Enhanced functionality allows salespeople to
spend more time on strategic activities
rather than mundane administrative tasks.
In fact, since the SAP implementation, an
analysis showed that 60% of the SKUs
increased the frequency at which they were
sold by 195%. As a result, Polar is now
rolling the DSD functionality out to its
Pepsi-Cola division.
DIRECT STORE
DELIVERY:
An essential component of
the full SAP for Consumer
Products suite supporting
across-the-board activities
that assure CPG manufacturers
availability of their
brands and products on
the retail shelf, including:
- Direct store delivery (DSD)
solutions enable you to sell and
distribute goods directly to your
customers' stores. You realize additional
sales opportunities, improve
customer retention, and gain reliable
information about the market.
SAP solutions support both paperbased
and mobile DSD, including
van sales. SAP Mobile Direct Store
Delivery provides enterprise functionality
for delivery personnel to
service customers and manage relationships
while working away from
their main office. Delivery personnel
can issue invoices, collect cash,
take orders for future deliveries,
manage truck inventory, and perform
other related activities.
- Manufacturing solutions enable
you to control batch-oriented
process manufacturing on the shop
floor. They facilitate the integration
of production planning, waste disposal,
and transport activities within
a plant. You can adapt production
schedules to respond to changing
market conditions and customer
demand.
- Inbound and outbound logistics
solutions enable you to efficiently
store, move, and transport food
products while reducing inventory
levels and tracking shelf life. You
can manage an entire warehouse
and deliver transportation services
quickly, with full support for crossdocking,
inbound and outbound
processing, transportation planning
and execution, physical inventory
management, and warehousing and
storage.
- Demand fulfillment /execution
is enabled with SAP applications
such as SAP Supply Chain
Management (SAP SCM) and SAP
ERP.
www.sap.com