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Discussion 1: What are the primary capabilities, advantages, and disadvantages of direct distribution, DCs, and cross-docks?
direct distribution- Bypass distribution facilities to fulfill retail store requests from the primary production point. Avoids the need to build and operate distribution facilities, reduces inventory in the system, and compresses order cycle time. Better with truckload quantities. But it can be expensive to deliver small quantities to buyers (reduced transportation efficiencies), limited safety stock, and demand volume variability.
Distribution Centers- can hold goods in anticipation of customer orders, provide a buffer of safety stock to protect against contingencies, and handle small quantity orders efficiently from transportation to fulfillment.
Cross-Docks- provide a high velocity alternative to direct shipping at lower transport costs with product mixing capabilities
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