Walmart Cross Docking Strategy

If the cross-docking strategy works so well for Wal-Mart, shouldn't all companies use the same strategy? Indeed, many successful retailers employ other distribution strategies; some keep inventory at their warehouses, whereas others ship directly to stores. These examples describe a number of supply chain management success stories. They suggest that in some industries, supply chain management is perhaps the single most important factor determining the success of the firm. Indeed, in the computer and printer industries, where most manufacturers use the same suppliers and identical technologies, companies compete on cost and service levels, the two key elements in our definition of supply chain management. The examples also raise an important

Throughout the rest of this book we endeavor to present these approaches and strategies in detail. We will focus on demonstrating why certain strategies are adopted, what the tradeoffs are between different strategies, and how specific strategies are implemented in practice. 1.5 KEY ISSUES IN SUPPLY CHAIN MANAGEMENT In this section we introduce some of the supply chain management issues that we discuss in much more detail throughout the remaining chapters. These issues span a large spectrum of a firm's activities, from the strategic through the tactical to the operational level: • The strategic level deals with decisions that have a long-lasting effect on the firm. These include decisions regarding the number, location, and capacity of warehouses and manufacturing plants and the flow of material through the logistics network. • The tactical level includes decisions that are typically updated anywhere between once every quarter and once every year. These include purchasing and production decisions, inventory policies, and transportation strategies, including the frequency with which customers are