Distribution Strategies

Question 1

Direct shipping

Answer 1

No warehouse or cross dock center
Costs and lead time lower, bullwhip minimised
Make to order and fragile goods or short life cycle high perishability

Question 2

Traditional Warehouses

Answer 2

Distribution centers and warehouses that keep inventory to meet demand of customers
High outbound costs, however risk pooling can be applied
Inventory management centralised or decentralised?
Centralised or local facilities?
Shorter lead time vs cutting costs?

Question 3

Cross docking

Answer 3

Warehouses and distribution centers only inventory transfer point. Only sorted, grouped or redistributed. Products already belong to retailer or customer
“Best of both worlds”

Question 4

Different types of cross docking

Answer 4

1. One-touch: Transfer one van to another
2. Single-stage: Control purpose, no sorting
3. Two-stage: Goods unloaded sorted prepared then loaded into vans
4. Parcel: Goods sorted per region
5. Mixed: Goods received and sent anywhere within station

Question 5

2 types of cross-docking operations

Answer 5

Pre-sorted, pick-to-zero

Question 6

When to cross-dock?

Answer 6

Predictable, high demand
Lead time is critical (perishable products)
High holding costs

Question 7

Lateral shipments

Answer 7

Shipment between same level in SC to meet demand. Need to share information, takes advantage of risk pooling

Question 8

Advantages direct, warehousing and x-dock

Answer 8

Direct and x-dock inventory advantage

Warehousing transport cost advantage

Question 9

Wal-mart choices

Answer 9

Combined warehouse and x-dock, little direct
Little pre-sorted x-dock
Most product flows warehoused
Remainder x-dock: push