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Article
Publication date: 5 May 2020

Yassine Benrqya, Mohamed Zied Babai, Dominique Estampe and Bruno Vallespir

The objective of this paper is to investigate the impact of products' characteristics on the performance of three distribution strategies: traditional warehousing (TW)…

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Abstract

Purpose

The objective of this paper is to investigate the impact of products' characteristics on the performance of three distribution strategies: traditional warehousing (TW), cross-docking pick by line (XDPL) and cross-docking pick by store (XDPS).

Design/methodology/approach

Based on a case study of an FMCG “Fast Moving Consumer Goods” company and a major French retailer, we empirically analyse the impact of the products' characteristics on the performance of the three distribution strategies. We consider a three-echelon supply chain composed of one supplier DC, one retailer DC and multiple retailer stores. The inventory at each echelon is controlled according to an order-up-to (OUT) level policy. The demand is forecasted by means of a single exponential smoothing method. A sensitivity analysis is also conducted to analyse the impact of the supply chain parameters on the comparative performance of the strategies when the parameters' values deviate from the empirical base case.

Findings

The empirical investigation shows that the use of XDPL results leads to an increase in the supply chain total cost, whereas XDPS reduces the cost. Moreover, we show that for a service-level target, cross-docking strategies should be selected for products with low variability, high shelf space, low value and short lead-time. For an inventory reduction target, these strategies should be selected for products with high demand volume. We also propose a managerial framework for choosing the right strategy for each product.

Originality/value

This paper fills a gap in the literature by presenting empirical results based on a real business case of a multi-echelon supply chain. Both cost and service are used to evaluate the performance of the strategies.

Research limitations/implications

Our work has the limitation to ignore the transportation cost implications when selecting the right distribution strategy. Hence, including such cost in the analysis would constitute an interesting extension of this work. Moreover, our empirical analysis represents a practical rich context that makes the scope for transferability of findings learned from this article substantial. However, for the generalisability of the findings, larger datasets in the retail supply chain would be interesting to consider

Details

International Journal of Physical Distribution & Logistics Management, vol. 50 no. 2
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 22 September 2022

Yassine Benrqya and Imad Jabbouri

An important phenomenon often observed in supply chain, known as the bullwhip effect, implies that demand variability increases as we move up in the supply chain. On the other…

Abstract

Purpose

An important phenomenon often observed in supply chain, known as the bullwhip effect, implies that demand variability increases as we move up in the supply chain. On the other hand, the cross-docking is a distribution strategy that eliminates the inventory holding function of the retailer distribution center, where this latter functions as a transfer point rather than a storage point. The purpose of this paper is to analyze the impact of cross-docking strategy compared to traditional warehousing on the bullwhip effect.

Design/methodology/approach

The authors quantify this effect in a three-echelon supply chain consisting of stores, retailer and supplier. They assume that each participant adopts an order up to level policy with an exponential smoothing forecasting scheme. This paper demonstrates mathematically the lower bound of the bullwhip effect reduction in the cross-docking strategy compared to traditional warehousing.

Findings

By simulation, this paper demonstrates that cross-docking reduces the bullwhip effect upstream the chain. This reduction depends on the lead-times, the review periods and the smoothing factor.

Research limitations/implications

A mathematical demonstration cannot be highly generalizable, and this paper should be extended to an empirical investigation where real data can be incorporated in the model. However, the findings of this paper form a foundation for further understanding of the cross-docking strategy and its impact on the bullwhip effect.

Originality/value

This paper fills a gap by proposing a mathematical demonstration and a simulation, to investigate the benefits of implementing cross-docking strategy on the bullwhip effect. This impact has not been studied in the literature.

Details

Journal of Modelling in Management, vol. 18 no. 6
Type: Research Article
ISSN: 1746-5664

Keywords

Article
Publication date: 6 January 2021

Yassine Benrqya

The objective of this paper is to examine the impact of cross-docking on the retail out of stock (OOS).

Abstract

Purpose

The objective of this paper is to examine the impact of cross-docking on the retail out of stock (OOS).

Design/methodology/approach

The research is based on a three-phase Delphi study consisting of a seeding/literature review phase, a pre-testing phase and a three-round Delphi study. The Delphi study used in this paper brings together leading supply chain management experts with leading academics.

Findings

The findings of the paper show that cross-docking may impact the retailers OOS drivers positively or negatively. The study demonstrates that cross-docking has a negative impact on ordering, placement, delivery, handling, DC handling and receipt. On the other hand, cross-docking has a positive effect on supplier ordering. Finally, academics and supply chain managers disagreed on the effect of cross-docking on the promotions driver. Academics consider that cross-docking has a positive impact on promotions OOS driver, while supply chain managers believe the opposite.

Research limitations/implications

The Delphi study was administrated to supply chain managers from a single major FMCG company, which is a supplier of grocery retailers. By including supply chain managers from the retailers' side, more perspectives on the impact of cross-docking on the OOS drivers can be investigated.

Originality/value

The study develops an original instrument to investigate the impact of cross-docking on OOS drivers. This is the first scholarly work to investigate the relationship between a distribution strategy and the OOS drivers.

Details

International Journal of Retail & Distribution Management, vol. 49 no. 5
Type: Research Article
ISSN: 0959-0552

Keywords

Article
Publication date: 23 May 2019

Yassine Benrqya

The purpose of this paper is to investigate the costs/benefits of implementing the cross-docking strategy in a retail supply chain context using a cost model. In particular, the…

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Abstract

Purpose

The purpose of this paper is to investigate the costs/benefits of implementing the cross-docking strategy in a retail supply chain context using a cost model. In particular, the effects of using different typologies of cross-docking compared to traditional warehousing are investigated, taking into consideration an actual case study of a fast-moving consumer goods (FMCG) company and a major French retailer.

Design/methodology/approach

The research is based on a case study of an FMCG company and a major French retailer. The case study is used to develop a cost model and to identify the main cost parameters impacted by implementing the cross-docking strategy. Based on the cost model, a comparison of the main cost factors characterizing four different configurations is made. The configurations studied are, the traditional warehousing strategy (AS-IS configuration, the reference configuration for comparison), where both retailers and suppliers keep inventory in their warehouses; the cross-docking pick-by-line strategy, where inventory is removed from the retailer warehouse and the allocation and sorting are performed at the retailer distribution centre (DC) level (TO-BE1 configuration); the cross-docking pick-by-store strategy, where the allocation and sorting are done at the supplier DC level (TO-BE2 configuration); and finally a combination of cross-docking pick-by-line strategy and traditional warehousing strategy (TO-BE3 configuration).

Findings

The case study provides three main observations. First, compared to traditional warehousing, cross-docking with sorting and allocation done at the supplier level increases the entire supply chain cost by 5.3 per cent. Second, cross-docking with allocation and sorting of the products done at the retailer level is more economical than traditional warehousing: a 1 per cent reduction of the cost. Third, combining cross-docking and traditional warehousing reduces the supply chain cost by 6.4 per cent.

Research limitations/implications

A quantitative case study may not be highly generalisable; however, the findings form a foundation for further understanding of the reconfiguration of a retail supply chain.

Originality/value

This paper fills a gap by proposing a cost analysis based on a real case study and by investigating the costs and benefits of implementing different configurations in the retail supply chain context. Furthermore, the cost model may be used to help managers choose the right distribution strategy for their supply chain.

Details

International Journal of Retail & Distribution Management, vol. 47 no. 4
Type: Research Article
ISSN: 0959-0552

Keywords

Article
Publication date: 6 October 2023

Yassine Benrqya, Youssef Chetioui and Chaimae Jerboui

The current research aims to investigate the relationship between supply chain (SC) processes maturity and SC performance in the context of an emerging market (i.e. Morocco)…

Abstract

Purpose

The current research aims to investigate the relationship between supply chain (SC) processes maturity and SC performance in the context of an emerging market (i.e. Morocco). Based on the SCOR model, the authors propose and test a thorough conceptual framework in which information systems moderates the relationship between SC processes maturity and performance. The effects of firm age and size are also taken into account.

Design/methodology/approach

Based on data collected from 175 top and middle managers using self-administered questionnaires, the authors empirically assessed the conceptual model using a partial least squares (PLS) estimation.

Findings

The study's findings demonstrate that SC processes maturity has a significant effect on SC performance. Second, information systems act as a moderator in the relationship between SC maturity and performance, e.g. the impact of supply chain processes maturity on supply chain performance measures is stronger in the presence of information systems support. Ultimately, firm size and age were found to have no significant impact on supply chain performance.

Practical implications

The study's findings help SC managers to better understand how SC maturity contributes to SC performance. A firm effectively executing maturity factors in its SC processes is more likely to achieve a better SC performance. The authors also established the key role of information systems in strengthening the impact of SC maturity on performance. SC managers should capitalize on the use of information systems to achieve superior SC performance.

Originality/value

The present research bridges a gap pertaining to the impact of supply chain maturity on SC performance, particularly in emerging markets. It is the first of its kind to investigate the influence of SC maturity on SC performance the context of emerging markets.

Details

International Journal of Productivity and Performance Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1741-0401

Keywords

Article
Publication date: 12 July 2023

Imad Jabbouri, Yassine Benrqya, Harit Satt, Maryem Naili and Kenza Omari

This study examines the impact of firm-specific and macroeconomic factors on the working capital behavior of firms listed in the Middle East and North African (MENA) region.

Abstract

Purpose

This study examines the impact of firm-specific and macroeconomic factors on the working capital behavior of firms listed in the Middle East and North African (MENA) region.

Design/methodology/approach

This study is based on a panel data analysis of 687 firms listed on 11 MENA markets, carried out using the Generalized Method of Moments (GMM) approach.

Findings

The results of this study reveal that profitable firms with high levels of operating cash flows adopt a conservative working capital management. Young firms with rapid growth rates, highly leveraged firms and firms with large investments in fixed assets have higher liquidity needs, which explains their tendency to pursue aggressive working capital strategies. Similarly, large firms exercise their bargaining power over their clients and suppliers to implement an aggressive approach of working capital management. Finally, firms do not have the luxury to decide how working capital should be managed when they are subject to outside macroeconomic forces that affect their stakeholders as well.

Practical implications

The findings of this study can help managers adopt efficient practices and identify optimal working capital levels. Firms in the MENA region maintain excess reserves of cash, which causes under-investment and inefficient allocation of resources in the economy. Improving working capital management practices can allow firms to regain operational efficiency, enhance financial performance and support economic growth.

Originality/value

To the best of the authors' knowledge, this study investigates this topic in MENA emerging markets and contributes to enriching the existing corporate finance literature in emerging markets.

Details

Journal of Economic and Administrative Sciences, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1026-4116

Keywords

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