A direct store delivery system is a form of inventory management in which products are sent directly to stores by the manufacturer for sale at those locations. This is in contrast to models that utilize a warehouse for a retail company, to which products are sent by a manufacturer. Those products are then sent from the warehouse to the actual store locations, which can introduce delays in merchandise being received at a store and other issues. A direct store delivery effectively eliminates this “middle man” and allows products to more quickly reach retail locations and customers.
A direct store delivery system can also require the intervention of a store employee, usually a manager or associate tasked with maintaining store inventory.
The use of direct store delivery, rather than warehouses, has some potential advantages and drawbacks.