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Software Modernization & OS Migration Among Factors Fueling Direct Store Delivery (DSD) Investments, According to VDC Research
Consumer products organizations focusing on addressing key inefficiencies
NATICK, MA | November 1, 2017 - The Direct Store Delivery (DSD) market – including mobile devices, software and professional services – is expected to eclipse over $860 million by 2021, according to a new report from VDC Research (click here for more information). Market growth will be fueled by modernization efforts of existing DSD solutions including organizations’ migration from legacy Windows operating systems to modern mobile operating systems.
Although the high costs of direct store delivery channels when compared to more traditional wholesale distribution channels are causing some consumer goods vendors to re-evaluate their strategies, DSD remains highly strategic with goods delivered via DSD representing a disproportionately higher share of profits. Consumer products organizations modernizing their DSD solutions are focusing on addressing key inefficiencies today – improving route planning, automating processes, providing more accurate insights into store performance – and ultimately delivering greater visibility across the DSD workflow. “Organization’s willing to invest resources into DSD solutions will see an improvement in these drivers, will be able to understand customer buying patterns, capture real-time demand more accurately, and identify opportunities where out-of-stock percentages can be improved,” said Nick Elia, Research Associate at VDC.
According to VDC, among next-generation DSD solutions, wireless DEX, penny perfect pricing, barcode scanning, navigation systems, and vehicle telematics are all capabilities that are currently in use or will be implemented in the future to improve DSD route operations. For consumer packaged goods (CPG) companies, the addition of new functionalities such as geo-fencing, predictive ordering, mapping tools, and real-time data processing has resulted in more efficient DSD solutions being deployed.
VDC’s research shows that as legacy operating systems for ruggedized devices start approaching end of life support, CPG companies still leveraging these systems within their DSD operations will need to reevaluate their positions and formulate a migration plan. “From a technology perspective, the organizations that are best positioned within this market have become OS & device agnostic. This is a leading differentiator for vendors in this space and having the ability to support iOS, Android, and Windows operating systems results in wide range of opportunities.” explained Elia. Migration and modernization efforts are also spurring discussion around the effectiveness of a two or three tiered DSD process versus a full service DSD process, as well as the types of hardware solutions that are most effective for mobile DSD workers.
“Determining whether or not DSD is a viable option for CPG organizations comes down to the type of product being sold, the amount of financial resources that are available to invest in DSD operations, and how efficiently these organizations can allocate resources to maximize profits, workflows, and productivity,” said Elia.
Click here for more information on this research.
About VDC Research
Founded in 1971, VDC Research provides in-depth insights to technology vendors, end users, and investors across the globe. As a market research and consulting firm, VDC’s coverage of AutoID, enterprise mobility, industrial automation, and IoT and embedded technologies is among the most advanced in the industry, helping our clients make critical decisions with confidence. Offering syndicated reports and custom consultation, our methodologies consistently provide accurate forecasts and unmatched thought leadership for deeply technical markets. Located in Natick, Massachusetts, VDC prides itself on its close personal relationships with clients, delivering an attention to detail and a unique perspective that is second to none.