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3 Tips for Tackling Next-Gen DSD

8/13/2013
Bypassing traditional supply chain consolidation in retailer or third-party warehousing facilities, direct store delivery (DSD) processes have proven a lucrative means of product distribution for suppliers across a range of markets. Yet with many of these systems and processes implemented 10 to 20 years ago, DSD operators have become complacent with outdated legacy systems and even paper-based processes. Although modern advances in mobile technologies increasingly pressure operators to refresh these systems, the pace of upgrades remain slow.

The next five to seven years will a see slow but steady wave of technology refresh penetrate the DSD market, according to a report from VDC Research. The next three to five years will see DSD operators increasingly evaluate opportunities for mobile solutions to enhance existing DSD processes. Early adopters such as PepsiCo, Anheuser-Busch, and Nestl will lead the charge.

The following recommendations were prepared by VDC Research and should be considered guidelines for organizations as they identify mobile technology requirements, evaluate vendors’ offerings and upgrade existing DSD systems.

Lead with your needs, not the technology
The confluence of trends such as cross-platform applications, iOS and Android penetration, and tablet form factor adoption has created a high degree of instability in terms of where the market for DSD technologies is headed. While advances in modern mobile technologies offer clear opportunities for enhanced efficiency and increased revenues, DSD operators must temper their pace of technology investment, waiting to see how the market evolves.

Don’t jump to consumer-grade technologies
Decision between legacy rugged hardware versus consumer grade devices should not be viewed as black and white. Recent years have seen invigorated efforts by vendors across the spectrum to bridge these two extremes, offering technologies such as semi-rugged hardware (such as durable), rugged Android devices (handhelds & tablets) and cases (such as Otterbox) for consumer-grade devices. Vendors must weigh the pros and cons of each of these, taking into account their rugged requirements, interaction with peripherals and the full cost of ownership for each hardware solution.

Hedge your mobile OS bets
While the vast majority of today’s DSD mobile devices are Windows-based, the mobile OS market is rapidly evolving. Uncertainty around Windows 8 migration and associated costs, especially as Android penetrates DSD environments, means organizations need to hedge their bets when investing in mobile

Click here to read this report in its entirety.

VDC Research is now working on an important research endeavor covering the market for enterprise mobility technologies and applications. It is looking for feedback from decision makers for mobile solutions to determine the key requirements and barriers associated with enterprise mobility. If that describes you, click here to take the survey.
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