Cross-docking Helps JCPenney Reduce Materials Handling and Make Logistics More Efficient

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Case Details:

Case Code : OPER091
Case Length : 10 Pages
Period : 2007-2009
Organization : JCPenney
Pub Date : 2010
Teaching Note :Not Available
Countries : USA
Industry : Retail

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts

The Challenge

During the middle of the 2000s, JCP began to struggle with capacity in its Buena Park RLC in Southern California. This RLC received all West Coast container shipments that arrived through the port at Long Beach. The retail chain felt that the facility and the third-party logistics provider working with JCP were being stretched to the maximum...

The Lathrop RLC

The Lathrop RLC opened in July 2007. Around 90 percent of the merchandise it received was from overseas. The main features of the facility were a high-speed conveyor (20,000 feet) and one of the world's longest single unit sortation systems (938 feet)...

Outlook

Once the merchandise reached the RSSCs, most of it was again cross-docked to a store as JCP only kept a small percentage of the merchandise received in temporary storage. According to Trebilcock, JCP had gained efficiency by taking the "handling" out of materials handling...

Exhibits

Exhibit I: A Comparison Cross-docking with other Distribution Strategies on Key Attributes
Exhibit II: Some Prerequisites for Cross-docking
Exhibit III: Four-year Financial Summary of JCP
Exhibit IV: JCP's Logistics Center Locations
Exhibit V: JCP's 10 Key Differentiators


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