Effect of cross docking on supply chain effectiveness in retail industry of Islamabad

Abstract

This study would help us understand the relationship between the cross-docking in the retail industry and also the impact it has on the supply chain effectiveness and overall supply chain performance. This research will clarify why it is important in the ever-changing market to adopt the new techniques of the markets and to adopt and adapt to such new ways of doing business. The research study was conducted to know the impact of cross-docking on increasing the effectiveness of the whole supply chain of an organization, specifically in the retail sector of Pakistan. Cross-docking effects six factors namely transportation cost, storage space, handling cost, order cycle time, inventory turnover and inventory investment. The impact of cross-docking was measured with these six variables with the supply chain effectiveness being measured by the tangible and intangible dimensions of doing the business. The analysis carried out discovered these all of these factors are vital and pertinent linkages between cross-docking and supply chain effectiveness. The statistical study also cross-docking can decrease the transportation cost of the organization and can increase the effectiveness of supply chain. Moreover, it can help in an increase the storage space with reducing the cost for handling the goods / materials. It was also found out that the cross-docking results in the reduced order cycle time hence increasing the supply chain effectiveness, also the inventory turnover is increased and simultaneously, the investment in inventory is decreased, all of these contributing in increasing the supply chain effectiveness of the retail outlets. This research study is an important contribution to the supply chain literature in Pakistan. The study reveals that through proper, timely and accurate utilization of cross-docking the retailers can have a lot of advantage and can save time and money and also improve the business efficiency. The study reveals that cross-docking effects strongly effects on the effectiveness of the supply chain of a business.