Sales & Operations Blog

Direct Store Delivery (DSD): What It Is and How to Make It Work for You

Written by Ian Leaman | Apr 17, 2025 8:30:28 PM

 

Direct Store Delivery—often called DSD—is a distribution method where goods are shipped directly from a supplier or distributor to a retail store, bypassing the retailer’s warehouse. It’s used across industries, but it’s especially popular with food, beverage, and other high-velocity consumer products. Emerging brands like Mezcla as well as giants like Campbell’s rely on DSD to get their products onto shelves faster and more frequently.

So why does DSD matter?

For starters, DSD can speed up time-to-shelf, improve freshness (critical for perishable items), and boost sales through more frequent restocking and merchandising support.

What to Consider When Choosing a DSD Provider

Not all DSD partners are created equal. Here are a few key factors to keep in mind:

1. Location & Reach

A regional DSD partner like Rainforest Distributors, which services over 4,000 retailers along the East Coast, can provide valuable market penetration. They handle everything from HQ calls and category reviews to promotional planning and launches—making them a strong option for brands targeting that region.

2. Technical Capabilities

If you're working with large chains like Target or Whole Foods, your DSD provider needs to handle Electronic Data Interchange (EDI) and other retailer-specific systems. An outdated provider can create bottlenecks in compliance, reporting, and inventory flow.

3. Cost Structure

Most DSDs require 25–35 margin points, which means your retail price will likely need to be higher to maintain profitability. It’s a worthwhile tradeoff for many high-volume brands looking to scale quickly—but one you need to model carefully.

4. Relationship Management

DSD reps often manage portfolios with 100+ brands. To keep your product front and center, you'll need to invest time in clear communication, regular support, and smart incentives that make your brand worth pushing.

DSD Isn't Set-It-and-Forget-It

DSD partnerships take time, energy, and coordination. That’s where tools like Pantry come in. Pantry helps brands manage inventory, monitor sell-through, and spot reordering needs before they become problems—so you're not relying on a rep's memory or a delayed spreadsheet. Whether you're onboarding a new DSD partner or managing several across regions, Pantry gives you the visibility and control to scale your operations with confidence.

Want to make the most of your DSD network? Learn how Pantry can help you keep your inventory flowing and your shelves stocked.