Having a company requires from an entrepreneur to have control over different aspects. Not only he needs to care about proper budget in order for example the production, but also he needs to think about how would the goods be sent to the clients. This is called distribution and nowadays an innovation that has changed a lot this field is Direct Store Delivery. This option is very interesting for a lot of companies, because it allows manufacturers to sell commodities directly to the point of sales. Hence, due to deciding for this option many savings might be generated as the distribution costs are minimized. Nonetheless, we ought to remember here that in the reality it isn’t as simple as it can be shown here.
It is indicated by the fact that, First and foremost, distributors have great experience and knowledge of the market. Consequently, they have a significant potential that is quite helpful in making a product of a relatively unknown company be broader accessible. Besides, we should also keep in mind that distributing requires a variety of diverse skills such as negotiating and thinking in the long-term, which also is referred to a requirement of running a distribution department in our company.
In terms of Direct Store Delivery we should remember that this option is pretty likely to develop at present. However, it might be a little bit dangerous for the distributors, which are likely to be interested a lot in slowing its improvement. It is proved by the fact that it provides a chance to bypass distribution centers, which is surely recommended from economical point of view. Consequently, this alternative is already used for example in areas such as food, beverage, oil&gas etc.
To conclude, as we can find out the history of improvement of diverse innovations in logistics, we can rapidly find out that the trends improve relatively quickly. Consequently, we ought to not forget that introducing Direct Store Delivery sooner than our competitors is likely to be a great decision for the future and help us gain satisfactory market share quite quickly.