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Direct Store Delivery (DSD) – Against all odds?

Dear community,  It has been a while since my last blog on the topic of DSD. All the more, I am more than happy to call your attention with this contribution.  As outlined in my last two blogs, the business process of Direct Store Delivery (DSD) is one of the strategic key growth areas for the CP industry as the process delivers a broad range of business benefits to all parties of the value chain (e.g., ensuring the desired level of product availability at point of sales with a proper product presentation on shelve, enabling the access to prime market information, increasing the efficiency of innovation and introduction of new products). Today, 24 of World’s Top 30 Fast Moving Consumer Goods companies employ the business process DSD.  But on the other side, many experts from both business and academia believe DSD to be a traditional process … or in short: They believe DSD to be “an old hat” with increased costs and few benefits! Due to the shift of process control and execution in the value chain resulting of DSD, especially retail companies are critical about DSD’s overall value-add.  In this context, we are more than happy to present together with Prof. Dr. Andreas Otto from the University of Regensburg the results of our accomplished as well as on-going DSD researches on this year’s Efficient Consumer Response (ECR) conference in Milano.  Especially, we talked about three questions there:  – Which companies perform DSD?  – Why do these companies perform DSD?  – How to perform DSD?  As for sure not all of you have been able to attend, please find our presentation here.   A Management Summary of the Global DSD Analysis, on which the presentation was based on, can be found here.   Your feedback on the topic and / or presentation would be greatly appreciated.  Thank you very much for your attention.  Best regards, Ramin
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  • Hello, my name is Bill Steele and I work for Coca-Cola Bottling Company in the US.  We are currently running SAP R/3 Enterprise (4.7) and would like to build a process within SD for our DSD business model.  I have heard that SAP was partnering with Coca-Cola North America to introduce DSD functionality, but the project was cancelled.

    I was wondering if SAP is starting up something new for a DSD solution.  We are very interested in this – we are the 2nd largest Coke bottler in the US.

    Best regards,
    Bill Steele

    • Hello Bill,

      Thanks for your note as well as your interest in our DSD solution and its evolvement. Just some clarifying words regarding your posting before I would anser your question:

      SAP had no specific program with Coca-Cola North America, a part of The Coca-Cola Company. At one point SAP had a joint special customer development project (SCDP) with Coca-Cola Enterprises.  This was a phased project with multiple deliverables across the life of the project.  At the conclusion of the first phase, roughly halfway through the project, both parties mutally concluded and agreed that it was in each one’s best interest to suspend the SCDP at that particular time.  Further, CCE determined at that time, to follow a standardized product footprint for the immediate future.  All scheduled deliverables were met by both parties up until the end of phase one.  At this time there are no concrete plans regarding a resumption of the project.

      All details of any SCDP are covered by non-disclosure provisions by both parties.  Consequently, we can not share further details regarding the project with you. 

      CCE remains a good and valued customer of SAP.  They are fully deploying SAP backoffice functionality across their system.  Mobility remains an open topic between the two companies.

      Meanwhile, SAP has a full DSD solution in general availability status, both DSD backoffice and a mobile handheld solution.  Information regarding the SAP solution can be found on the SAP Service Marketplace (

      I hope this helps.

      In case of any further questions or remarks, please don’t hesitate to come back to me at any time.

      Thanks and
      Best regards,

  • Hi
    Retail is booming industry in India. Organized Retail is competing with low cost Unorganized mom & pop stores / farmers markets etc. In this scenario Supply Chain agility and low SC cost is of utmost importance. Note that the transport infrastructure is really bad. Would DSD provide the cost reduction and higher efficiency in this case ?