As negotiations become more complex we run the risk of eroding value by prioritizing price. In this article we examine the direct store delivery model that many CPG companies offer partners. When you allow yourself to see the bigger picture, multi-level value propositions become clear.
In negotiation, many people get hung up on one variable: price! This is old school thinking. If price takes priority, all you’ll do is erode value. As deals get more complex, we must realize that it is not price that’s important, but instead, total value. We need to see the bigger picture and understand the full benefits of the deal in front of us. A perfect example of this is the direct store delivery (DSD) model that many CPG companies offer their partners.
What is DSD?
Direct store delivery is a vertically integrated business model, setup to deliver products from a vendor or supplier straight to a store to avoid strain on the retailer’s distribution network. Full merchandising services are offered by many DSD suppliers, including the unloading, stocking, and rotating of products in-store. This allows retailers to focus labor on the rest of the store and let vendor merchandisers handle their own products.
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