Operation Strategy
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Cross docking
In this strategy we are moving our goods directly from our warehouses to consumers. This
distribution strategy we have applied in which the customers and distributors are supplied (in case
of B2C & B2B) by central warehouses which act as coordinators of the supply process and as
transshipment points for incoming orders from distributors and consumers but in this strategy we
are not keeping any stock. We are moving goods from one truck to another set of trucks. In some
cases we take off pallets or boxes containing items from incoming truck and move directly to
outgoing truck to avoid inventory cost. This technique is mainly used for the larger time slots that
are 1 day & 2 day.
Refresh inventory
We are constantly refreshing our inventories through the received orders and products coming from
the distributors. When a new lot of product comes to the warehouses then we send those products
to the customers who are already present in our warehouses and through the various time slots we
are continuously refreshing our inventories.
Transportation cost
This includes the cost of moving the items from the warehouse to warehouse and warehouse to
consumers. As seen from the diagram given below we have two slots for the transportation costs.
The overall transportation cost is thirty one percent of the total capital estimation:
Warehouse to warehouse
It includes cost of moving the items from one warehouse to other. This will mainly occur when the
cost of moving goods from distributor to warehouse is high than the cost of moving products among
the warehouses. Example, when one consumer demand for any variety of products and it’s not
available in the nearby warehouse, then we order the product from the nearby warehouse to avoid
the high cost of ordering product from the distributor.
Warehouse to customer
