Freight Glossary
Direct Store Delivery (DSD)
Direct store delivery (DSD) is a distribution model where a supplier or manufacturer delivers product directly to individual retail store locations, bypassing the retailer's distribution center. DSD is common in CPG categories like beverages, snacks, and bakery. A snack brand delivering to 40 convenience stores in a metro area each week is a classic DSD operation.
Why it matters
DSD enables suppliers to control shelf presence, manage product freshness, and respond to store-level demand more quickly than DC-routed replenishment. But it requires significant logistics investment to execute at scale across many store locations. Brands running DSD programs typically spend 15 to 25 percent of revenue on distribution, making route efficiency critical to profitability.
When to use it
DSD makes the most economic sense for high-turn, perishable, or promotional products where supplier control of in-store execution is worth the added complexity of managing individual store deliveries. If your brand is launching into a new metro and needs to service 20+ store locations weekly, DSD gives you direct control over merchandising and freshness.
How Warp thinks about it
Warp supports DSD-style last-mile freight moves through its box truck and cargo van network, enabling CPG and food brands to deliver directly to stores with reliable scheduling and digital proof of delivery. With 9,000+ cargo vans and box trucks, Warp provides the fleet density to run multi-stop store delivery routes across major metro markets.