Pure Cross-Docking as Strategy of Distribution for Courier Services: A Quantitative Study on Perceived Benefits Associated with Inventory Cost

Abstract

Cross-Docking is adopted by many companies not only to decrease cost of operations but also to increase level of customer satisfaction and optimize goodwill. Although implementation of the strategy is much complex specially in uncertain courtiers like Pakistan therefore majority of warehouses are opting this strategy in combination with  limited warehousing in order to avoid the risk of stock out cost. Therefore there is minimal knowledge available regarding the use and benefits of the strategy. Although the strategy has been used across the world and with CPEC implementation Pakistan might also be included in the list of developed economies and companies coming from abroad require this strategy to work properly. Thus there is a need of study to identify benefits associated with the strategy of pure cross-docking but quantifying numerous benefits through single study is quire impossible. There this study focused specifically upon inventory holding cost as the benefit of cross-docking and after analysis it has been determined that the strategy would not bring impact on the inventory holding cost unless it is impaired with proper communication.

Keywords: Pure Cross-Docking, Uncertain Countries, Perceived Benefits of Cross-Docking & Inventory Cost

DOI: 10.7176/IEL/9-5-02

Publication date:June 30^th 2019