Optimization on FMCG Distribution Based on the Cross-Docking Mode: Taking a Cooperative Project as an Example

Abstract

Cross-docking, as a newbreakthrough for enhancing the distribution center’s operation efficiency andreducing inventory level, has accelerated the product circulation.Distribution, as an important part of logistics service, directly influentscustomers’ satisfaction. According to FMCG (Fast Moving Consumer Goods)distribution, high warehouse cost affects the profitability of the company in away. So, reducing logistics cost and increasing efficiency has become a pivotalfocus. This paper focuses on problems such as high warehouse cost and lowoperation efficiency in project RDC that found in a cooperative project fromCompany A (a third party logistic enterprise) and Company B (FMCG company).Concerning the characteristics of FMCG distribution, this paper highlights astrategy that traditional distribution mode should be substituted by adoptingthe cross-docking mode, and that the model of the comprehensive evaluationindex system (AHP-TOPSIS) should be built in order to verify our idea. A seriesof supporting measures should be also presented based on the discussion andanalysis of mode and data, which gives recommendations on selecting a supremelogistics mode for Company A, and then achieve a more efficient operation for distributioncenters. Meanwhile researching FMCG distribution from the perspective ofcross-docking mode is an innovation. Our research considers a certaintheoretical and practical significance to enhance the overall operating abilityof the Third Party Logistics enterprises and shorten the cycle of the supplychain.Keywords: FMCG;Cross-docking mode; logistics pattern; Optimization