Why the Direct Store Delivery Model Feels Broken – And What We Can Do About It

DSD model, direct store delivery

 Walk any grocery aisle on a busy afternoon, and you’ll see the direct store delivery (DSD) model in action. Drivers rolling in carts, shelves half-faced, store teams scrambling to keep up, brand reps trying to grab a few minutes with the manager. 

On paper, direct store delivery (DSD) should make everything easier. Products go straight from the supplier to the store. Items move fast. Shelves stay full. In reality, it often feels like everyone is doing more work and getting less value. 

The pain shows up in three places: the retailer, the CPG company, and the broker in the middle. 

How DSD Creates Pain for Everyone 

Pain Points for Grocery Retailers

For grocery stores, DSD is supposed to reduce workload. In many cases, it does the opposite. Store teams juggle multiple vendor schedules, backdoor check-ins, and merchandising requests on top of regular store operations. When routes run late or are short-staffed, it’s the store that gets blamed for empty shelves.

Pain Points for CPG Companies

For CPG companies, the problem is visibility and consistency. They pay for displays, promotions, and preferred placement, but it’s hard to know what actually happens in the aisle. Photos and notes come in from different reps in different formats and with varying levels of detail. A few strong reps can mask weak execution elsewhere.

Pain Points for Brokers

For brokers, the challenge is coverage and control. They’re expected to deliver strong retail execution while relying on a patchwork of field teams, routes, and local labor markets. When retailers or CPGs escalate issues, brokers often lack the levers to fix them quickly at scale.

No one is trying to do a bad job. The DSD route-to-market itself is just fragmented. Each side owns a piece of the puzzle, but no one really owns the whole picture inside the store. 

 

Where a Third-Party Workforce Can Help 

This is where an experienced third-party merchandising workforce can play a different role in direct store delivery. 

Instead of each vendor sending their own people into the store, a single neutral partner can handle the day-to-day work that makes DSD succeed: 

  • Checking in deliveries and moving product to the floor 
  • Filling shelves and facing product after each drop 
  • Building and maintaining displays and endcaps 
  • Cutting in new items and executing resets 
  • Watching code dates and cleaning up the aisle 

Done right, this doesn’t replace store teams or vendor reps. It gives them room to focus on what they do best. 

  • Store teams focus on running the store and serving shoppers. 
  • CPG and broker teams focus on strategy, relationships, and selling. 
  • The third-party team focuses on consistent, repeatable execution in the aisle. 

 

How a Third-Party Workforce Adds Scale and Consistency 

A specialized third-party merchandising workforce is built to support DSD at scale. The value isn’t just in more people – it’s in how those people are organized and supported. 

A few things matter here: 

  • Nationwide coverage with a W2 workforce. Because workers are employees, not gig contractors, they can be trained consistently, scheduled reliably, and held to clear standards. That matters when you’re asking someone to be the face of multiple brands and a retailer in the same visit. 
  • Retail-experienced merchandisers. When most of the team already knows grocery and merchandising, they don’t need weeks of ramp-up. They understand backroom realities, the pace of a busy store, and how to work around shoppers without creating more chaos. 
  • A centralized operations hub. Instead of local chaos, work is planned, scheduled, and monitored through one central team. That team can see where coverage is thin, where visits are missed, and where stores need extra support, then move resources quickly. 

Because of this setup, the right third-party partner can fill several gaps that DSD leaves today. A company like SASR Workforce Solutions exemplifies this model in practice. 

What This Looks Like in Practice 

 

Benefits for Retailers 

Here’s how a centralized third-party team can connect the dots for all three sides. 

For the retailer: 

  • One partner, one playbook. Instead of dealing with separate reps and standards for every DSD vendor, the store gets a single set of expectations and a predictable visit pattern. 
  • Less firefighting. When routes change, reps quit, or promotions hit all at once, the third-party team can flex hours and shift coverage without dropping everything on store leadership. 

Benefits for CPGs and Brokers 

For CPG companies and brokers: 

  • A field team without building a field team. They can tap into a readymade, nationwide merchandising workforce instead of recruiting and managing their own in every region. 
  • More reliable execution data. When work is captured through one system with photos and basic reporting, it’s easier to see where execution is strong, where it’s slipping, and where to invest. 

Shared Wins Across the DSD Model 

For everyone together: 

  • Clear lines of accountability. The third-party team owns the “did this get done in the aisle?” question. That doesn’t solve every problem, but it does eliminate a lot of finger-pointing. 
  • Less noise, more focus. Retailers, CPGs, and brokers spend less time chasing basics and more time talking about growth: assortments, innovation, and shopper experience. 

A good real-world example of this approach is a third-party team being brought in to handle large-scale category resets. Instead of each brand managing its own section, the workforce partner executes the entire plan, store by store, while providing proof of performance. The result is less disruption in the store and a cleaner reset for shoppers. 

A More Practical Version of Direct Store Delivery 

The point isn’t that DSD should disappear. For many categories, it still makes sense. The issue is that the traditional version assumes everyone has unlimited time, people, and coordination. 

That’s not reality. 

A centralized, experienced third-party workforce gives all three sides a practical way to make DSD work: 

  • Retailers get consistent support in the aisle. 
  • CPGs and brokers get better coverage and clearer feedback. 
  • Shoppers see fuller shelves and better-kept displays. 

It’s not a silver bullet, but it is a realistic path to turn direct store delivery from a constant headache into something closer to the efficient model it was meant to be. 

Direct Store Delivery and Third-Party Support  FAQs

 

What is direct store delivery (DSD) in grocery? 
Direct store delivery is a model in which suppliers ship products directly to individual stores rather than through a retailer’s central warehouse. It’s common in categories like beverages and snacks, where speed and freshness matter. 

Why does the DSD model create challenges for retailers, CPGs, and brokers? 
DSD spreads responsibility across multiple teams. Retailers own the store, CPGs own the brands, and brokers sit in the middle. Without a clear owner for in-aisle execution, gaps show up as empty shelves, missed displays, and extra work for store staff. 

How can a third-party merchandising workforce support DSD execution? 
A third-party workforce can take on the everyday tasks that keep DSD running smoothly: checking in deliveries, stocking shelves, building displays, and handling resets. This gives store teams, CPGs, and brokers a consistent layer of support they can all rely on. 

When does it make sense to bring in a third-party partner? 
It makes sense when DSD feels chaotic at store level, when coverage is inconsistent across markets, or when internal teams are stretched too thin. In those situations, a specialized merchandising partner can plug the gaps with trained merchandisers and centralized planning, without forcing anyone to redesign their entire DSD strategy. 

SASR Workforce Solutions, headquartered in Cary, NC, is a national workforce solutions and project management partner serving retail, grocery, convenience stores, and construction industries across all 50 states. We help the nation’s leading brands execute fixtures, remodels, resets, rollouts, and special projects with precision, speed, and scale. Backed by a nationwide W-2 workforce, centralized operations, and advanced technology, SASR delivers customized workforce solutions that drive executional excellence and operational efficiency from planning to completion.