When scrolling on social media platforms nowadays, one might see various influencers providing links to clothing, decor, beauty products, and other everyday items. Oftentimes, users can opt to have these items shipped directly to their home.

In a similar sense, direct-store-delivery (DSD) technology has been influenced by beverage market trends.

David Gottlieb, chief revenue officer at Quincy, Mass.-based FORM, creator of GoSpotCheck, a retail execution platform for beverage distributors and suppliers, shares that a host of trends are impacting the DSD technology market.

“Broadly, the in-store mix continues to evolve as consumer preference shifts a bit away from alcohol and more toward healthier, non-alcoholic choices,” he says. “Within the adult beverage segment, even though it’s shrinking on a relative basis, we’re seeing significant change as ready-to-drink (RTD) options continue to expand and gain share with consumers.”

All this change means DSD operators need better tools to understand execution, quickly spot innovation trends, share changes and ensure they’re delivering against their merchandising priorities, Gottlieb explains.

“Field teams with this kind of technology, who are able to drive high-scale performance management while focusing on specific in-store objectives, are going to overperform the market and put themselves in a position to win with consumers,” he notes.

SKU proliferation continues to impact this technology as well. Gottlieb considers it to be a “huge” factor affecting DSD technology.

“Shoppers have more choice than ever, and it’s increasingly difficult for DSD operators to manage their activities and priorities given the complexity of the in-store set and retailers’ appetite to avoid disappointing shoppers with limited variety or product availability,” he shares.

Gottlieb notes that advancements have been made to DSD technology that support the needs of today’s distributors.

“High-performing DSD operators can leverage technology to achieve both operating impact and efficiency,” he says. “Tools available today help drive smarter routing and scheduling, prioritize in-store tasks and confirm ‘perfect’ execution.”

Artificial intelligence (AI) platforms are quickly advancing and can support each of these areas, Gottlieb adds.

“Similarly, technology that helps in-store reps focus on merchandising can significantly improve selling performance at the outlet level, benefiting both the distributor and the retailer,” he notes. “The ability to digitize the store and understand what was executed provides valuable performance management data for distribution teams, while also giving suppliers more actionable insight to optimize their planning and selling efforts, especially in chain accounts.”

It’s not only about deciding which stores to prioritize, Gottlieb shares. Data also can tell users which locations don’t need a visit at all that week, which saves time and keeps representatives focused, he explains.

DSD technology provides distributors with benefits. Specifically, Gottlieb notes greater visibility and control across their entire operation.

“It improves route efficiency, reduces wasted store visits and ensures reps stay focused on the highest impact activities in-store,” he says. “Over time, these efficiencies translate into better margins, improved service levels and a more agile response to changing consumer demands. The result is stronger retailer relationships and a measurable return on investment.”

Before selecting DSD solutions, beverage distributors should consider potential challenges.

“It’s important to balance risk appetite with the maturity of the technology solution providers,” Gottlieb states. “Distributors looking for something rock solid and capable of delivering scaled results should look closely at where solution providers have proven experience and can demonstrate success.”

For those looking to experiment, Gottlieb says earlier-stage technologies might be worth exploring, but these should be framed properly inside the business with clear boundaries set around such “test and learn” exercises.

FORM’s expert shares his expectations for the future of DSD technology.

“We’ll see continued automation and even greater use of smart AI tools that help teams work more effectively and have more impact on the field,” Gottlieb states. “Teams will have more time to focus on what they do best: build relationships and provide great support to retailers.”