Direct Store Delivery Audit

DSD

Are You Leaking Profits From Direct Store Delivery Purchases? Consider a DSD Recovery Audit.

A DSD Recovery Audit, as a part of a Retail Recovery Audit, or as standalone project, can bring significant recovery dollars to your bottom line. In a business with slim margins, recoveries from a DSD audit can have a significant impact to a company’s profitability.

We are very happy with the results that we receive through [SAS’s] post audit review of our Direct Store Delivery invoices, receipts, and vendor promotions. I recommend engaging them for post audit review to assist your organization with finding lost revenue.

Senior Director

Business Systems and Accounting Regional Grocery Chain

Did You Know Studies Have Shown That DSD Merchandise Can Account for Approximately 24% of a Retail Company’s Total Sales and as High as 52% of Profits?

Interestingly, The Internal Controls In Place To Manage The DSD Process Are Difficult To Employ And, In Many Cases, May Be Antiquated

As a result, retail companies are at a higher risk of overpaying vendors on certain transactions, thereby reducing revenues.

Many executives in the grocery, distribution, convenience, and mass merchandise verticals are concerned about the prices of DSD product being in sync with ongoing promotional activity. They have shared with us their challenges in being able to manage and account for the enormous amount of disparate data associated with DSD transactions.

What Makes A DSD Audit Unique?

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Huge amount of data – DSD transactions can easily be 10 – 20 times larger than warehouse transactions
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Deal data is in a different system than warehouse data
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Short deal periods
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Promotional offerings can vary by location
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Unique product mix

Why Is A Disciplined Approach To A DSD Audit Necessary?

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Must ensure completeness and accuracy of backdoor receiving data
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Accuracy of deal capture is critical
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Payment matching to purchase transactions is unique
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Billback deductions need to be accounted for
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Understanding of guidelines must be established for the audit

Make sure your retail recovery audit firm is capable of handling DSD data, and more importantly, that they have a specific audit approach to allow for maximum recoveries

Not all retail recovery audit firms have the skillset to perform an effective and profitable DSD audit. For more information on how Strategic Audit Solutions can partner with you to identify, recover, and prevent future profit leakage in the DSD environment contact us today.

“I’ve seen firsthand how much Direct Store Delivery (DSD) impacts a retailer’s bottom line, and how easily profits can slip through the cracks. With the large volume of data, complex promotions, and fragmented systems, DSD is incredibly difficult to manage without the right expertise. The result is real, measurable recoveries in an area that's often overlooked and underestimated.”

Robert Hamlett

Audit Director
SAS in Numbers

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Lost Profits Recovered

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Clients Served

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Fortune 500 Companies

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