A large retailer would like to reduce inventory investment in its distribution network. Which of the following actions is most likely to produce the desired result in the shortest time?
A large retailer would like to reduce inventory investment in its distribution network. Which of the following actions is most likely to produce the desired result in the shortest time?
Implementing cross-docking can significantly reduce inventory investment in a distribution network by minimizing the need for storage. By immediately transferring incoming goods to outbound transportation without long-term storage, companies can reduce storage costs and the total amount of inventory held within the network. This method ensures a quicker turnaround, thus achieving the desired reduction in inventory investment in the shortest time.
Implementing cross-docking can help reduce inventory investment in a distribution network by reducing the time products spend in the distribution center. Cross-docking involves receiving products and immediately moving them to outbound trucks for delivery, bypassing the need for storage in the distribution center.