Cross-docking Helps JCPenney Reduce Materials Handling and Make Logistics More Efficient

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Case Details:

Case Code : OPER091
Case Length : 10 Pages
Period : 2007-2009
Organization : JCPenney
Pub Date : 2010
Teaching Note :Not Available
Countries : USA
Industry : Retail

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Introduction Contd...

According to Bob Trebilcock, Executive Editor, Modern Materials Handling (MMH), "Energy conservation, reduced maintenance, increased capacity and port diversification. Put them together, and they add up to crossdocking success."³

Background Note

Cross-docking is the practice of expediting the flow of product from receiving to shipping with a minimum of handling in between. Cross-docking strategy is one of the three distribution strategies usually employed by a retailer; the other two being inventory-at-

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warehouses strategy in which inventory is kept at the warehouses, and direct shipment strategy in which inventory is directly shipped. However, very few retailers use one of these strategies exclusively (Refer to Exhibit I to see how cross-docking compares with other distribution strategies and Exhibit II for some of the prerequisites for cross-docking)...

Excerpts >>

3] Bob Trebilcock, "JCPenney: Out the Door," http://redigitaleditions.com, October 16, 2009.

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