How Direct Store Delivery Works

Direct store delivery sends goods from a supplier or its distributor straight to each store, skipping the retailer’s own distribution center. Central distribution sends goods first to the retailer’s warehouse, which then ships mixed loads to stores.

Both methods move product to shelves. They split the work and cost in different ways.

Where Direct Store Delivery Fits

Direct store delivery tends to fit products that sell fast, spoil quickly or need frequent restocking. Beverages, bread, snacks and dairy are common examples. The supplier’s drivers often stock shelves and check freshness during each visit.

Because of that, the model gives the supplier control over the shelf. In return, the supplier carries the cost of many small deliveries.

How Central Distribution Works

In central distribution, by contrast, suppliers ship full loads to the retailer’s distribution center. The retailer then combines goods from many suppliers into store loads.

As a result, each store gets fewer deliveries, and suppliers make fewer, larger shipments. The retailer takes on warehousing and store delivery costs, and it usually sets strict receiving rules.

Comparing Costs

• Direct store delivery adds many small trips for the supplier
• Central distribution adds warehouse handling for the retailer
• Store labor differs, since direct drivers may stock shelves
• Inventory sits in different places in each model

Even so, no single model costs less across the board. The answer depends on product, store count, delivery frequency and distance.

Food Safety in Both Models

Food that needs temperature control brings federal rules into play either way. The FDA’s sanitary transportation rule places duties on shippers, loaders, carriers and receivers. The FDA sanitary transportation page summarizes those duties.

For example, direct store delivery may involve many short stops with doors opening often. Central distribution may involve longer hauls and more handoffs. Each pattern carries its own temperature risks.

Choosing Between Direct Store Delivery and Central Distribution

In many cases, retailers decide which model they accept for each product. Suppliers then plan around that choice. Ask your retail buyers which model they use for your category and what receiving rules apply.

A hypothetical regional bakery, for instance, might deliver direct to stores within a short drive and ship through a retailer’s distribution center for distant stores. The article on retail compliance covers the rules that come with central distribution.

Records in Each Model

Direct delivery creates a record at every store, often a signed delivery ticket. Central distribution creates one large receipt at the retailer’s warehouse. Both, however, need clean counts and signatures. The guide on the bill of lading explains what those signatures prove.