house storage. Wal-MartÆs system depends on two sets of trucks, one coming from supplier factories and the other scheduled to make deliveries to Wal-Mart stores, arriving simultaneously at a company loading dock. Workers move the product from the first set of trucks into the second without ever storing it in a warehouse at all. The product is then carried to its final destination without any costly rest stops along the way. This concept is referred to as ôflow-throughö or ôone-stopö logistics (Treacy & Wiersema, 1997).
The advantages of Wal-MartÆs cross-docking technique are impressive. It enables Wal-Mart to streamline its supply chain from the point of origin to the point of sale. Operating costs decrease, while throughput increases, inventory levels are reduced, and more floor space becomes available for sales. Cross-docking eliminates unnecessary product handling and storage, thus reducing the equipment, space, and personnel normally required for handling and storing the products. Reduced handling results in less product damage as well as fewer products that become obsolete while being stored in a warehouse (ôCross Dockingö). Goods can be centrally ordered, delivered to one side of a distribution center, and then transferred directly to outbound trucks without any ôdown timeö spent in a warehouse. This approach cuts inventory and reduces all the costs associated with managing and storing inventory. It also makes much more efficient use of the delivery trucks, since only full trucks are sent out. One full truck makes fewer trips to the store than several half-full trucks, reducing trip expense, truck wear, and the time needed to get all of the product to the store where it can be sold to increase profits (Czerniawska & Gavin Potter, 1998).
An important facet of Wal-MartÆs cross-docking technique is the linking of store requirements direct
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