It is impossible to look at the quality of material handling processes without looking at delivery costs to retail outlets. Nearly three-fourths of the total costs of direct store delivery (DSD) rest with warehouse, order assembly, and delivery to retail customers. The remaining 30 percent of costs come from demand and supply planning, manufacturing, order generation, dispatch planning, and transportation. When looking at the total system involved in DSD, one must consider three key elements: the health and safety of workers, product damage and quality of service, and the most cost-effective way to deliver products. Delivering Excellence newsletter reported on the rise of DSD.