DSD Report

Introduction

Merchandise that flows to consumers through direct store delivery (DSD) is managed differently than merchandise that passes through the more commonly understood warehouse delivery supply chain (from consumer goods supplier to retailer warehouse/distribution center to retailer store). DSD operations have their own unique processes and business challenges, which sometimes tend to get overlooked in analysis and discourse over EPC/RFID use in the retail and consumer goods industries. This Global Commerce Initiative (GCI) report and its underlying research were produced to examine the role and value of Electronic Product Code (EPC)-based radio frequency identification (RFID) technology in the DSD supply chain.

The report is a snapshot in time that provides baseline data on DSD suppliers’ and retailers’ views on various aspects of EPC/RFID value and performance based on a survey conducted in November and December 2007. It measures their perceived value of EPC/RFID, how they could incorporate the technology into their operations, and their expectations for when they might do so. It also highlights important differences between DSD and warehouse delivery operations that relate to EPC/RFID. It is assumed that the responses were primarily given respective to sellable products in the retail supply chain, rather than other applications like tracking reusable assets (e.g. trays, crates, totes, kegs, etc.). When the survey was taken, 42 percent of respondents were piloting EPC/RFID technology and 22 percent were using it in ongoing operations (this data includes EPC/RFID use throughout the organization and is not specific to DSD operations). Representatives from six different retailers and twenty-nine different consumer goods suppliers responded to the survey. The results published in this report are the summary of those survey responses and are not necessarily the opinion of GCI or any of its groups/subcommittees.

This GCI report is intended to foster continued discussion among manufacturers, retailers and other interested parties about the role of EPC/RFID in DSD operations based on the current attitudes and experiences of DSD companies. We also hope it calls attention to specific DSD issues so that suppliers, retailers and technology developers can recognize and acknowledge these conditions when planning strategy and technology initiatives.

Document

Supplier and Retailer Views on EPC/RFID Technology for Direct Store Delivery (DSD) (2.2 MB)

GCI_report_final_webprofile-SupplierandRetailerViewsonEPC-RFID.pdf