Delivery Distribution

 

What is Delivery Distribution?

An under-served business model in search of digital transformation

DSD Route Sales 2

The Delivery Distribution Opportunity

There are approximately 100,000 mid-sized businesses in North America whose success depends on the quality of their Delivery Distribution operations. Historically, these businesses have not been able to fully leverage the capabilities of ERP technology because they lack a well-integrated mobile solution.

At xkzero, we recognized this opportunity, and built the first Delivery Distribution platform designed to fully integrate with modern ERPs and meet the challenges of today's omnichannel marketplace.

Omnichannel Marketplace 

With today’s advances in technology, businesses receive orders through many different channels. This creates greater complexity for Delivery Distribution operations and their customers. Improved technology used by commercial couriers has also created expectations for a modern mobile delivery experience. Delivery Distribution processes that worked in the past (I.E., paper documents, clipboards, spreadsheets, whiteboards, etc…) are inadequate for the demands of today’s modern omnichannel marketplace.

Delivery Distribution Operations 

There isn’t a single simple model for Delivery Distribution. What these operations all have in common is that they utilize their own fleet of vehicles to deliver products directly to customers. Delivery Distribution operations usually have a dedicated team of drivers, salespeople, and merchandisers. In some models, drivers may also handle sales as well as other tasks.

Delivery Distribution Operations

Unique Business Processes.

Customer requirements can vary widely by industry and company. Due to this complexity, Delivery Distribution operations usually have unique process requirements. That said, most Delivery Distribution operations fit into one of these broad categories:

  1. Route Delivery: This is the simplest model where the company completes ad hoc delivery of pre-existing orders to customers.
  2. Direct Store Delivery (DSD): DSD is the model followed by businesses that supply grocery and convenience stores. DSD drivers are also sales reps. They may deliver pre-existing orders but may also create a sale on the spot based on the requirements for that day. DSD reps may also have responsibility for marketing activities as well as display management.
  3. Route & Van Sales: Under this model, vehicles are loaded with expected daily demand, and customers are sold and serviced, usually following pre-established stop orders.
  4. Hybrid: Many companies utilize a hybrid method, loading vehicles with a mix of pre-sold orders and well as extra stock to make additional sales along the route.

Regardless of the model deployed, most Delivery Distribution operations all need the ability to plan and optimize routes (whether the routes are static, or change each day), balance truck loads based on constraints, control inventory, capture proof of delivery, plus account for returns and any payments collected. Delivery Distribution operations may also involve marketing activities, such as managing shelf stock, monitoring plan-o-grams, surveying customers and competition, and more.

How is Delivery Distribution performed?

There can be tremendous variation by company and industry in the way that Delivery Distribution is performed, but most rely on some variation of this:

Primary Process

Order/Load Management

Items are loaded based on orders or expected demand, and must satisfy capacity constraints, such as weight.

Whether static or dynamic, the goal is for drivers to visit as many customers per day as possible.

Route Preparation
Warehouse Check Out

Products must be picked, staged, and loaded onto trucks.

On-site with the customer, the driver rep may perform a multitude of different tasks.

Physical Distribution
Warehouse Check In

Unsold or returned products must be re-stocked, scrapped, or otherwise disposed, depending on the reason.

Reconciliations are performed for inventory, sales and returns, payments, etc. with variances accounted for.

Route Settlement

Physical Distribution Process

Distribution

Complete delivery, modify qty changes, capture signature, photo, geo-code P.O.D.

New sales, manage returns and payments, deliver orders, manage shelf inventory and more.

Sales
Marketing

Survey customers and competition, monitor compliance for promotions and planograms, and more.

Service display cases or equipment, perform other assigned tasks from management.

Other Tasks

ERP Data and Process Integration

Master Data Management and Planning Processes establish the foundation on which the activities and transactions of the Delivery Distribution business are based. Master data rules and standardized planning processes must be in place to allow accuracy and sustainability of commercial transactions, warehousing and logistics activities, and financial processing.

Master Data

The key Master Data components identified are:

  • Customer Hierarchy and Point of Sale (POS)/ Point of Delivery (POD) Master Data
  • Material and Products Master Data
  • Pricing and Promotions Master Data
  • Other Master Data: Routes, Trucks, Users, Warehouse
Customer Hierarchy
POS/POD Master Data
Materials/Products
Pricing and Promotions
Demand Forecasting
Goal and Target Setting

Master data should provide rules for allowable transactions and activities processing depending on the business scenario. For example, certain promotions should only be available to specific customers in specific geographical regions, or only certain user roles should be allowed to approve financial transactions over certain dollar amounts. The business must establish these rules and controls around each master data type and attribute. Establishing and maintaining these controls helps ensure accuracy and consistency of transactions and activities across the business.

Empowering Your Stakeholders

There are many roles within an organization with a critical stake in a successful Delivery Distribution operation.

Sales and Delivery

  • Route drivers
  • Field / Pre-sales reps
  • Customer Service Reps

Operations & Logistics

  • Warehouse personnel
  • Route planners and dispatchers
  • Transportation and Fleet management
  • Inventory and production planning
  • Maintenance personnel
  • Truck loaders

Management

  • Sales and Marketing
  • Operations
  • Accounting
  • Executive
  • Human Resources

Information Technology

  • Network administration
  • Data specialists
  • Programmers
  • ERP specialists

Customer

  • Owner
  • Store Manager
  • Warehouse / Receiving
  • Accounting
  • Purchasing / Buyer

XMC creates a superior experience for your customer with modern technology that drives quality throughout the whole process and into each stakeholder’s role. This is accomplished by streamlining work, sharing mission critical information, reducing lead times, and creating greater overall visibility from warehouse to customer and back.

To put a fine point on it, XMC reduces costs, grows sales, expands market share, and helps promote loyalty to your brand.

What XMC Offers Delivery Distributors

XMC – xkzero Mobile Commerce is a technology solution like no other. It is a comprehensive Delivery Distribution platform connecting mobile route delivery and sales processes easier with your entire team. XMC enables sales, produces far better delivery outcomes, and eliminates tons of administrative burden and cost. That is the promise of XMC.

DSDAssets and equipment copy 4  Direct Store Delivery

XMC provides all the tools you’ll need to organize your day, sell with confidence, delight customers, all while keeping inventory & payments under control.

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2routesalesAssets and equipment copy  Route & Van Sales​

Get the most out of visits to your route customers. Refresh stock, introduce new products, handle everything easily on your mobile device.

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routedeliveryAssets and equipment copy 2  Route Delivery

Plan and prioritize the most cost-efficient routes, while meeting tight customer delivery windows, and allowing your driver/reps to visit more customers daily.

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keyfeaturesAssets and equipment copy 3  Key Features

XMC improves and integrates your entire delivery distribution operations. From the warehouse to the driver to sales to customer service to accounting and IT. ​

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Our industry experts are ready to help accelerate your business forward, keep your customers happy. We're excited to partner with you on this journey! 

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