Product & customer profiling for Direct Store Delivery (DSD)

Abstract

This thesis is to analyze the suitability of different products, suppliers and customers for Direct Store Delivery (DSD) model with respect to the qualitative profile and the quantitative benefits. During the research, interviews with retailers, suppliers and industrial experts provide the basis and insight for the qualitative analysis of factors that make certain products, suppliers and customers best suitable for a DSD model. In order to quantify the benefits that DSD can bring to the entire supply chain, a generic model of the DSD system is built. Based on the quantitative analysis, the stock-out at store shelf is simulated in order to understand the effects of DSD operations to the minimization of stock-out costs at the store shelf, a major benefit that DSD is assumed to generate. With the conceptual framework and the quantitative model, this thesis is aimed at providing supply chain managers a comprehensive perspective to adopt DSD for their products and customers.