For those outside the grocery industry, direct store delivery (DSD) is a distribution model used by manufacturers/CPGs that entails delivering products directly to retail store shelves. This model is extremely conducive for perishable food categories.
Five months ago, feels like five years, back in late 2019, I wrote, "CPG companies' online channel is rapidly growing … with sales expected to double in five years." My, how things have changed. In less than one month, there were 35% more e-commerce CPG buyers, Amazon could no longer meet its 2-day prime shipping promise, and I am still waiting for the desk that I ordered two months ago.
The current global pandemic has not only forced immediate readjustments for CPG but will undoubtedly disrupt and transform supply chain business models permanently – or at least until the risk has reduced to an acceptable level – as consumers adapt to a new world of virus avoidance.