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Pham Viet Ngoc Khoi

on 14 November 2011

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Transcript of LOGISTIC


2.Strategy analysis
The Boyz - Cross-Docking
Lecturer: Albert Van Ahee

s3324450- Kim Koan Dong
s3342167- Phan Anh Bao
s3260902- Pham Viet Ngoc Khoi
s3324257- Le Chi Cuong
s3275132- Nguyen Tan Tai
s3293297- Nguyen Truon Giang

Place your own picture
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What is Cross-Docking
(cc) photo by Metro Centric on Flickr
(cc) photo by Franco Folini on Flickr
(cc) photo by jimmyharris on Flickr
(cc) photo by Metro Centric on Flickr
2.Strategy analysis
3.Industry example
4.Local application
“A direct flow of goods from the receiving process to the shipping process with the least handling and storage between, involving some form of sortation” (Bolten, 1997, p.58).
Objective: Saving time, reduce inbound cost
Facilitates the rapid flow of
goods through supply chain
Saves handling stages
Time Management
Shortens replenishment cycle
Increases speed of inventory turn
Reduces storage, handling and
inventory carrying
Certain areas can be assigned
in the staging area
New sections for sortation will be similar to
a less -than truck load carrier break
bulk terminal
Efficient use of space
2.Strategy analysis
Requires large number of vehicles
and significant startup investment
( Levi, Levi & Kaminsky 2003, p.134)
Alterka (2005, p.231) claims
Requires strong IT base,

real time information sharing facilities

eg. (bar codes on cartons)
Needs great degree of
coordination and synchronization
between incoming and
outgoing shipments
A fast and responsive
transportation system
is crucial
Forecasts, product availability

, accuracy and quality are critical
Pros and Cons
Reduction of cost
Reduction of cycle-time
Reduction of inventory levels
Better account receivables
Improvement in warehouse base usage
Ray (20110, p.423)
Effective for only large distribution
Increase transport costs
Requires handling space
for sortation activities
Pradhan (2009)
3.Practical example
Rugman (2003, p.101) considered Wallmart as:
An American public multinational corporation running chains of large discount department stores and warehouse stores.
The biggest employer with over 2 million employees
Sales in 2010 was $258,229
Reduce inventory by $1.8 billion over prior year
(Walmart annual report 2010)

”Walmart delivers about 85% of its goods ultilizing cross docking techniques”
( Levi, Levi & Kaminsky 2003, p.135)
Avoiding usual inventory
Quicker replenish
popular products
Reduce cost of goods sold
Practical example - Why Cross docking
According to Levi, Levi & Kaminsky (2003, p.135)

Operating a private satellite system sending (POS) data to all vendors --> Providing a clear picture of sales at its stores

Dedicating fleet of 2000 trucks and on average stores are replenished twice a week
The cost savings allow reducing cost of sales
Able to offer lower prices than competitors
Reducing expenses for promotions
-----> Sales are more predictable and forecasting for cross docking system more accurate (Shah 2009)
3.Practical example – Benefits of cross-docking
4.Local Application
Agriculture industry
Vietnam's Logistics facts
about 10% of vietnamese companies use cross-docking and more complex logistic service
Why need cross-docking?
Vietnam's agriculture issue: Cost
Effort to increase revenue by
, income can increase by
Effort to reduce cost by
, income can increase by
(Eckart Dutz - founder of Vietnam supply-chain operation)
----> Cross-Docking benefits tend to solve the problems
Local application
Vissan Corp.
Fresh Food


Processing Food
Advantages & Disadvantages
Vissan's Cross-Docking strategy
Reduce inventory cost and risk
Flexible system
Difficult to manage complex cross-docking activities
Hence, increase income and productive ability
Butchering 1800 head/ 12hour shift
Over 8 tons vegetable/ day
Around 10 tons of canned food/ day
Butchering 2,400 head/6-hour shift
Over 10 tons vegetables/ day
Around 14 tons of canned food/day
Save more than 5 billions VND /day
Source: Vissan.com
Thank you
Altekar, R 2005, ‘Supply Chain Management: Concepts And Cases’, Prentice Hall of India Private lmtd, New Delih.
Bolten, E 1997,’ Managing time and space in the modern warehouse: with ready-to-use forms, checklist & documentation’, AMACOM, 1601 Broadway, New York.
Levi, E, Levi, D & Kaminsky, P 2003, ‘Designing and managing the supply chain:
concepts, strategies, and case studies’, 2nd edn, McGraw-Hill companies, USA.
Pradhan, S 2009, ‘Retailing management: Text and cases’,3rd edn, Tata McGraw-Hill Education Private Limited, Pashupati Printer Ltd, Delhi.
Ray, R 2011, ‘Enterprise Resource Planning’, Tata McGraw-Hill Education Private Limited, 7 West Patel Nagar, New Delhi.
Rugman, A 2004, ‘North American economic and financial integration’, Elsever Ltd, Netherland.
 Rushton, A, Croucher, P & Baker, P 2010, ‘The handbook of logistics & distribution management’, Replika Press Pvt.Ltd, India.
Shah, J 2009, ‘Supply Chain Management: Text and Cases’, Pearson Education, Pushp Print Services, India.
Saigontiepthi, 2011Increase income, decrease cost of supply chain , <http://www.sgtt.com.vn/Kinh-te/154386/Tang-loi-nhuan-giam-von-tu-chuoi-cung-ung.html> viewed on 7th Sep 2011
SMM 2008, SMM supply chain insight, SMM Corparation <http://www.scmvietnam.com/home/webfm_send/7> viewed on 7th Sep 2011
Rushton, Croucher & Baker (2010, p.293)
Adapted from Vissan 2010
Adapted from SMM 2008
Comsumer goods
Processing wood
Cars industry
Pie Chart: Percentage of main industries invovle inlogistics activities
International transportation
Domestic trasportation
"Most-used" activities of logistics in Vietnam
Full transcript