An examination of the effects of cross-docking on retail out of stock

Abstract

PurposeThe objective of this paper is to examine the impact of cross-docking on the retail out of stock (OOS).Design/methodology/approachThe 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.FindingsThe 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/implicationsThe 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/valueThe 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.