Impact of Product Characteristics on Distribution Strategy Selection

Benrqya, Yassine; Estampe, Dominique; Vallespir, Bruno; Babaï, Mohamed Zied

doi:10.1080/16258312.2014.11517350

Cited by 6 publications

(35 citation statements)

References 3 publications

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“…Cross-docking, compared to a traditional warehousing strategy, reduces inventory costs, reduces the time to market and decreases handling costs (Benrqya et al , 2020). On the other hand, this strategy impacts the supplier's transportation and handling costs due to ordering in small batches and also impacts the service level due to the increase of the lead time to the stores (Ku et al , 2017; Benrqya et al , 2014, 2020). Due to the direct link between the suppliers and the retail stores, to the increase of the lead time to the stores and to the complexity of cross-docking operations, we believe that the causes of the OOS may be affected positively or negatively by this distribution strategy.…”

Section: Introductionmentioning

confidence: 99%

An examination of the effects of cross-docking on retail out of stock

Benrqya

2021

IJRDM

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PurposeThe objective of this paper is to examine the impact of cross-docking on the retail out of stock (OOS).Design/methodology/approachThe research is based on a three-phase Delphi study consisting of a seeding/literature review phase, a pre-testing phase and a three-round Delphi study. The Delphi study used in this paper brings together leading supply chain management experts with leading academics.FindingsThe findings of the paper show that cross-docking may impact the retailers OOS drivers positively or negatively. The study demonstrates that cross-docking has a negative impact on ordering, placement, delivery, handling, DC handling and receipt. On the other hand, cross-docking has a positive effect on supplier ordering. Finally, academics and supply chain managers disagreed on the effect of cross-docking on the promotions driver. Academics consider that cross-docking has a positive impact on promotions OOS driver, while supply chain managers believe the opposite.Research limitations/implicationsThe Delphi study was administrated to supply chain managers from a single major FMCG company, which is a supplier of grocery retailers. By including supply chain managers from the retailers' side, more perspectives on the impact of cross-docking on the OOS drivers can be investigated.Originality/valueThe study develops an original instrument to investigate the impact of cross-docking on OOS drivers. This is the first scholarly work to investigate the relationship between a distribution strategy and the OOS drivers.

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Section: Introductionmentioning

confidence: 99%

An examination of the effects of cross-docking on retail out of stock

Benrqya

2021

IJRDM

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“…Suppliers and retailers keep inventory at their DCs. Products are first received and stored at the retailer DC, and when a store places an order, products are prepared from the retailer DC inventory and shipped to the destination (Benrqya et al , 2014; Pires et al , 2017). Cross-docking is a distribution strategy in which the retailer DC operates as a transfer point rather than as a storage point.…”

Section: Introductionmentioning

confidence: 99%

“…Cross-docking is a distribution strategy in which the retailer DC operates as a transfer point rather than as a storage point. In the cross-docking strategy, products arrive at the retailer DC from the suppliers, are transferred to vehicles serving the stores and are then delivered as quickly as possible (Benrqya et al , 2014; Hübner et al , 2013; Shah and Khanzode, 2017). In addition, there are numerous typologies of cross-docking distribution strategy and several characteristics can be considered to distinguish between the various types (Vogt, 2010; Benrqya et al , 2014).…”

Section: Introductionmentioning

confidence: 99%

“…In the cross-docking strategy, products arrive at the retailer DC from the suppliers, are transferred to vehicles serving the stores and are then delivered as quickly as possible (Benrqya et al , 2014; Hübner et al , 2013; Shah and Khanzode, 2017). In addition, there are numerous typologies of cross-docking distribution strategy and several characteristics can be considered to distinguish between the various types (Vogt, 2010; Benrqya et al , 2014). In our study we focus on the classification related to the sorting and the allocation of the products.…”

Section: Introductionmentioning

confidence: 99%

“…The cross-docking strategy has both positive and negative impacts on supply chain performance (Wong and Johansen, 2008; Kumar, 2008; Sandberg, 2013; Benrqya et al , 2014). The cross-docking distribution strategy has some important advantages over traditional warehousing because it reduces inventory costs, storage space and handling costs.…”

Section: Introductionmentioning

confidence: 99%

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Costs and benefits of using cross-docking in the retail supply chain

Benrqya

2019

IJRDM

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Purpose The purpose of this paper is to investigate the costs/benefits of implementing the cross-docking strategy in a retail supply chain context using a cost model. In particular, the effects of using different typologies of cross-docking compared to traditional warehousing are investigated, taking into consideration an actual case study of a fast-moving consumer goods (FMCG) company and a major French retailer. Design/methodology/approach The research is based on a case study of an FMCG company and a major French retailer. The case study is used to develop a cost model and to identify the main cost parameters impacted by implementing the cross-docking strategy. Based on the cost model, a comparison of the main cost factors characterizing four different configurations is made. The configurations studied are, the traditional warehousing strategy (AS-IS configuration, the reference configuration for comparison), where both retailers and suppliers keep inventory in their warehouses; the cross-docking pick-by-line strategy, where inventory is removed from the retailer warehouse and the allocation and sorting are performed at the retailer distribution centre (DC) level (TO-BE1 configuration); the cross-docking pick-by-store strategy, where the allocation and sorting are done at the supplier DC level (TO-BE2 configuration); and finally a combination of cross-docking pick-by-line strategy and traditional warehousing strategy (TO-BE3 configuration). Findings The case study provides three main observations. First, compared to traditional warehousing, cross-docking with sorting and allocation done at the supplier level increases the entire supply chain cost by 5.3 per cent. Second, cross-docking with allocation and sorting of the products done at the retailer level is more economical than traditional warehousing: a 1 per cent reduction of the cost. Third, combining cross-docking and traditional warehousing reduces the supply chain cost by 6.4 per cent. Research limitations/implications A quantitative case study may not be highly generalisable; however, the findings form a foundation for further understanding of the reconfiguration of a retail supply chain. Originality/value This paper fills a gap by proposing a cost analysis based on a real case study and by investigating the costs and benefits of implementing different configurations in the retail supply chain context. Furthermore, the cost model may be used to help managers choose the right distribution strategy for their supply chain.

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