October 08 2020

REPOST - COVID-19 and the rise of direct-to-consumer deliveries, delivery system, delivery service (1)

It’s no surprise that home deliveries and DSD have seen a massive influx since the end of March when the UK lockdown began. Wholesalers and distributors have completely reconfigured how they work, providing goods to local and rural communities who would otherwise have struggled with the limited supply of supermarkets and stores.
Likewise, foodservice businesses have also begun to stock direct to consumers. This article will dive into the rise of home deliveries, and how the trend may become a permanent business model for many businesses who have adopted this direct-to-consumer model.

Direct-to-consumer, out of necessity

The Wholesale Industry has not been associated with constant growth and progression for the past decades. The way they work was largely unchanged, and customers, deliveries and schedules. However, COVID-19 disruptions placed a lot of pressure for wholesalers to change, as stocks were beginning to stagnate and the lack of Government support left a large portion of the Industry in a very tricky situation.
Along with their retail counterparts, wholesalers and distributors began relying on digital technologies; most e-commerce direct-store-deliveries and home deliveries. This transitional period would likely have taken years if it were not out of necessity, to keep supply chains open.
It was an unavoidable disturbance that resulted in huge operational changes for food and beverage supply chain businesses.
Similarly, the Direct Selling Association revealed a large number of individuals joining Direct-to-consumer brands and businesses, becoming salespeople during the lockdown to supplement incomes and curve further economic difficulties.
These adaptations prove that although these Industries, with the exception of retailers, have been largely unchanged for decades, they are versatile and resilient under stressful conditions.

The Importance of Technological Development

Without the assistance of the IoT and digitally recorded & stored data about stock levels, customer preferences, consumer behaviours and delivery technologies, COVID-19 disruptions would have hit a lot harder than they already have, and Industries would be struggling far more. Now that we have the capability to curve unexpected disturbances, it’s each businesses’ duty to take active steps towards safeguarding themselves against future threats.

References

https://www.essentialretail.com/news/covid19-rise-directtoconsumer/
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