Enhancing supply chain flexibility through cross docking

Abstract

Today's businesses have to deal with the challenges of a rapid change in market demand and business environment. Customers have higher demand that can serve their needs and satisfaction. This convinces businesses to be responsive and try to adapt their supply chain to be flexible. One of the factors that can lead to supply chain flexibility is cross docking. Along the processes of supply chain, cross docking can be applied in the distribution sector. Cross docking is a type of distribution facility that helps firms to effectively manage inventory. It is to consolidate different shipments from different suppliers based on their final destinations and to deliver within 24 hours. There are three main cross docking processes including receiving, sorting , and delivering processes. During the whole process, there are distribution practices that the operation should achieve in order to have effective cross docking operation. However, firms have their own limitation of resources that should efficiently allocate to significant practices. Therefore, this quantitative paper conducted questionnaire surveys of 500 participants and analyzed data by using structural equation modelling (SEM) to explore the most efficient practices that can achieve cross docking operation and then it can enhance supply chain flexibility. Integrated resources or shared physical resources, sequence operational flow, information sharing and just-in-time distribution are the main factors of cross docking and each factor has different practices. After data analysis, integrated resources or shared physical resources and information sharing are the most positive influential factors that can enhance supply chain flexibility. Within the limited resources of each firm, the resources can be allocated to the most suitable practices.