What is Van Sales?

Van Sales is a type of distribution method whereby a manufacturer will bypass Retailer Distribution Centres to deliver and upsell stock directly to retailers. It's important to keep this process streamlined with an end-to-end platform.

Often seen as part of a Direct Store Delivery (DSD) strategy, Van Sales can be particularly valuable to companies prioritising speed of low SKU (Stock Keeping Units) volume products or perishables.

In the rapid market of FMCG (Fast Moving Consumer Goods), shortening product journeys before being in-store is invaluable for manufacturers. It is imperative to find the most efficient means to distribute their goods. For many, Van Sales have emerged as a viable alternative to the typical order of the supply chain, offering greater flexibility for deliveries and any potential accompanying activities; including taking orders, checking compliance and stock levels.

With market share growing exponentially over the COVID-19 crisis, the need to bring products to market quickly has become even more vital. Timing pressures increased in tandem with demand and navigating different in-field tasks, such as merchandising activities, payment collection and invoicing. This was even more difficult to manage in the same trips as van loading and unloading, product delivery and replenishment. Additionally, social distancing requirements meant that the less people involved along the product route became the obvious choice for efficiency and safety. Brevity and delegation of tasks became essential for manufacturers seeking to keep up with this extra strain on the supply chain.

The dynamic between retailer and manufacturer has also changed over the past 18 months; as demand rises, brands who can supply the greatest amount of stock at the optimum pace have more power with the retailer. In the past, supply has tended to overpower demand, which has put the manufacturers somewhat at the mercy of the retailer. As this is no longer the case, it is to the detriment of the manufacturer to keep their stock waiting at a retail distribution center for a chain of stores.

Delivering stock as and when it is required to a wider variety of retailers puts more agency back in the hands of the manufacturer brand and is a major advantage to Van Sales. This is due to the fact that it allows for more specialised and controlled product volumes to be sent to retailers and be immediately available to customers. The pandemic has only accelerated the obvious need for manufacturers to have more of a hand in product journeys. Van Sales offers manufacturers the opportunity to increase their outlets for sale, ensuring that FMCG aren’t dwelling in a warehouse out of the eye of the consumer.

Though it sounds like the advantages are myriad, a company ill-prepared to make the move to Van Sales can encounter a number of challenges.

Here are a couple of avenues that need attention to ensure Van Sales are optimised:

Route & Visit Planning Capabilities

With smaller, more specialised deliveries, route planning is key to ensuring that every journey delivers as much product in the most efficient timeframe possible.

Moreover, as Van Sales are popular vehicles for transporting perishables, it's even more imperative to get the product into stores rapidly. Time saved by bypassing the retail distribution centers and warehouses mustn't be wasted, but capitalised upon.

Route planning, especially when synchronised on platform alongside the entire day's visits, is a pivotal part of the retail execution process when the manufacturer is taking control of the entire supply chain process. A poorly-set out route, though it can seem insignificant in real-time, is detrimental to long-term product visibility, brand sustainability and bottom line.

Prioritising In-Stock

With ‘retailers worldwide losing a staggering $1.75 Trillion annually due to the cost of overstocks, out-of-stocks and needless returns’, there are tangible benefits to investing in Van Sales.

Supplying in real-time to demand removes risks of over-stock, and being able to deliver more rapidly in smaller quantities to specific stores reduces the chance of an out-of-stock. Shockingly, out-of-stocks alone are contributing $634.1 Billion each year towards the aforementioned retailer losses.

70% of purchase decisions are made in store - if a product isn’t there, that's a staggering amount of potential profit already gone.

Taking Orders

One of the aspects of Van Sales that sets it apart from the larger distribution approach is the driver's added capacity to sell while on location. In addition to the stock in van to be delivered, there are often provisions ready to up and cross sell; this is why it can also be referred to as Ready-Stock Sales.

On-site, the drivers can take and deliver orders instantly. Not only is this cutting out the middle-man of extra distribution warehouses, but the product is immediately available. In the fast moving market of the Consumer Goods industry, providing the driver with the autonomy to fulfil two roles streamlines the process.

It also enhances customer satisfaction (products will be in-stock faster) and relationships with retailers (no waiting times or potential risk of long delays).

The Aforza Solution

Successful deployment of a direct to store delivery model, including Van Sales, requires a modern, end-to-end execution platform that underpins the efficiency and effectiveness of every delivery. This is where Aforza provides a market leading solution for the Consumer Goods (CG) industry with a single platform that allows manufacturers to plan, visit, sell and deliver products to market.

Built to enable the Total Experience from the distribution chain through to retail execution, the Aforza platform provides real-time inventory visibility that makes it easier than ever to maintain the necessary stock levels to keep your products where they need to be - in the eye of the consumer.

Aforza’s route planning capability optimizes a driver's schedule to ensure that the maximum amount of time is spent in-store, not in transit.

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