Distribution Strategies - Intermediate inventory storage point strategies
5 important questions on Distribution Strategies - Intermediate inventory storage point strategies
Which intermediate inventory storage point strategies exist?
- Traditional warehousing strategy
- Cross-docking strategy
- Centralized pooling strategy
- Transshipment strategy
What is a cross-docking strategy?
Why are cross-docking systems very difficult to manage?
- Distribution centers, retailers and suppliers must be linked with advanced information systems to ensure that all pickups and deliveries are made within the required time windows.
- A fast and responsive transportation system is necessary for a cross-docking system to work.
- Forecasts are critical, necessitating the sharing of information.
- 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. There is enough volume every day to ship with full trucks.
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