Cross Docking
Cross-docking
- System limited inventory costs and decreases lead time by decreasing storage time.
- Difficult to Manage:
1. Distribution centers retailers, and suppliers must be linked with advanced information system to ensure that all pickups and deliveries are made within the required time windows.
2. A fast and responsive transportation system is necessary for cross-docking system to work.
3. Forecasts are critical, necessitating the share of information
4. Cross-docking strategies are effective only for large distribution systems in which a large number of vehicles are delivering and picking up goods at the cross-dock facilities at any one time.
3PL Advantages
1. Focus on Core Strengths
- 3PL provide a company with the opportunity to focus on that company’s particular area of expertise.
2. Provide Other Flexibilities
- Flexibility in geographic location
- . provide for warehousing a company meet customer requirements within committing capital and limiting flexibility by constructing a new facility or committing to a long-term lease.
Retailer-supplier Partnerships
Problems:
- It is necessary to employ advanced technology, which is often expensive.
- It is essential to develop trust in what once may have been an adversarial supplier – retailer relationship.
- In a strategic partnership the supplier often has much more responsibility than formerly.
- Expenses at the supplier often increase as managerial responsibilities increase.
Push – Based Supply Chain
- Inability to meet changing demand patterns.
- Obsolescence of supply chain inventory as demand for certain products disappears.
- Excessive inventories clue to the need for large safety stock.
-
- Large and more variable production batches.
- Unacceptable service levels
- Product obsolescence.
-
Pull – Based Supply Chain
- Decrease in lend times achieved through the ability to better anticipate incoming order from the retailers.
- Decrease in inventory at the
- System limited inventory costs and decreases lead time by decreasing storage time.
- Difficult to Manage:
1. Distribution centers retailers, and suppliers must be linked with advanced information system to ensure that all pickups and deliveries are made within the required time windows.
2. A fast and responsive transportation system is necessary for cross-docking system to work.
3. Forecasts are critical, necessitating the share of information
4. Cross-docking strategies are effective only for large distribution systems in which a large number of vehicles are delivering and picking up goods at the cross-dock facilities at any one time.
3PL Advantages
1. Focus on Core Strengths
- 3PL provide a company with the opportunity to focus on that company’s particular area of expertise.
2. Provide Other Flexibilities
- Flexibility in geographic location
- . provide for warehousing a company meet customer requirements within committing capital and limiting flexibility by constructing a new facility or committing to a long-term lease.
Retailer-supplier Partnerships
Problems:
- It is necessary to employ advanced technology, which is often expensive.
- It is essential to develop trust in what once may have been an adversarial supplier – retailer relationship.
- In a strategic partnership the supplier often has much more responsibility than formerly.
- Expenses at the supplier often increase as managerial responsibilities increase.
Push – Based Supply Chain
- Inability to meet changing demand patterns.
- Obsolescence of supply chain inventory as demand for certain products disappears.
- Excessive inventories clue to the need for large safety stock.
-
- Large and more variable production batches.
- Unacceptable service levels
- Product obsolescence.
-
Pull – Based Supply Chain
- Decrease in lend times achieved through the ability to better anticipate incoming order from the retailers.
- Decrease in inventory at the