System limited inventory costs and decreases lead time by decreasing storage time. -
Difficult to Manage:
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.
Focus on Core Strengths
- 3PL provide a company with the opportunity to focus on that company’s particular area of expertise.
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.
- 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
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 retailers...
Please join StudyMode to read the full document