2. Should the TP model be extended
across the country? Why? If yes,
what should be the implementation
plan?
Yes!
3. Why should it be extended?
Improved costs
Better efficiency
More agile
More responsive
More visibility
Reduced workforce
4. However
Several factors attributed to the success of the
transit point trail
No stock outs at the central warehouse
No production issues
Weather conditions
No transportation issues
5. Additional factors
Considerable capital and time needs to be
invested
Average product delivery time could increase
Higher costs of transportation
High costs involved in modifying Central Office
To be cost effective, there needs to be consistent
high volumes
Transportation fleet needs to be increased to
serve all regions
Need to optimize interconnectivity between all
regional offices
6. Implementation Plan
Identify the expected benefits
Understand the requirements
Sophisticated IT systems
Standardized processes and training
7. Cross docking facilities
Modify the existing ware houses
New facilities which support cross docking
Storage area in the facility
Facilitate direct customer pickups
9. Safety Stock Maintenance
At regional warehouses
At central warehouses and plants
Maintain customer service levels
10. IT Systems
Order processing
Information sharing
CPFR
Increase supply chain visibility
Implement advanced forecasting techniques
Space optimization techniques
15. Recommendation
The success of cross docking depends upon
low demand-variance and relatively close
distribution distances. However, the demands
for Merloni’s products were quite variable.
The company should had used advance
logistics information system like “Total Asset
Visibility (TAV)”, which gives real time visibility
at any time.
16. Recommendation
They should use the concept of transshipment
to increase its performance on efficiency front.
As given in the case study, regional
warehouse are of different capacity. So, the
company could use some of the bigger
warehouses to fill other smaller warehouses or
nearby warehouses as and when required.