Case Study: Coping with
future growth with cross dock centres
A DIY retailer that was projecting significant growth wanted to
determine the best strategy for the next 5 years. Although it would have
been possible to continue to build warehouse space to hold inventory,
they wanted to determine whether the use of cross dock centres would
avoid major investment.
We constructed a model with the CAPS Supply Chain Designer and used it
to determine the numbers and locations of cross dock centres and to
resolve which suppliers should be moved into them. We also determined
which suppliers should deliver direct to stores and which should be
delivered via the central warehouse.
The model indicated that significant cost reductions could be achieved
and the strategy has now been successfully implemented.
