Coop Switzerland – Automated Cross Docking Processes for Fresh Goods
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Write an paragraph no less than 300 words to describe how and why cross-docking benefits COOP according to the video ‘Coop Switzerland – Automated Cross Docking Processes for Fresh Goods’.
Coop Switzerland Automated Cross Docking Processes for Fresh Goods
Coop, Switzerland, is a famous consumer cooperative leading retail company. The organization generates revenue from its 832 supermarkets and megastores across Switzerland. Coop Switzerland implemented logistics and Baker strategy, cross-docking, which is designed to optimize and realign its processes and locations, and investing in enhancing logistics procedures on a sustainable foundation. Cross-docking is described as an order fulfilment approach that eradicates mid-stage storage of goods (Datex Corporation, 2015). When properly managed, cross-docking makes it possible to speed up the picking and dispatch of products, minimizing operation costs. Cross-docking has assisted Coop Switzerland in achieving a competitive advantage within the industry of fresh products retail business. Coop Switzerland utilizes automated cross-docking in loading processes for low containers in with fresh products and meat products automated in the lone of their distribution destinations (Dematic Europe, 2014). According to the Coop Switzerland Operation Manager, by utilizing the cross-docking procedure, Ultra fresh products have a shelf life of a maximum of three days. Previously, the company’s goods were packed onto roll containers ranging from 6 pm to midnight for the different stores; thus, incurring high handling expenses (Dematic Europe, 2014). For instance, meat products were stored from midnight to 10 am in freezers which caused discomfort for the consumers and loss to the company. This paper aims to evaluate how and why cross-docking benefits Coop Switzerland.
To facilitate the density of the process, automated cross-docking ensures the goods are packed in a predefined sequence and delivered on pallets or roll containers. Every container roll is labelled with a sequence number and point of sale information. By implementing the automated cross-docking model, Coop has managed to reduce transportation expenses, given that it only delivers goods demanded by the consumers (Dematic Europe, 2014). With optimized course-plotting, fewer miles are wasted, reducing fuel and associated vehicle services expenses. Moreover, automated cross-docking assists Coop Switzerland in providing fixed asset cost savings and necessitates less facility square footage. Coop Switzerland indicates that automated cross-docking processes play a significant role in by providing storage space occupancy savings (Datex Corporation, 2015). Before implementing automated cross-docking procedures, Coop Switzerland encountered different complexities, such as having less space due to increased product storage before transported to the consumers.
Automated Cross-docking is essential to Coop Switzerland’s activities, given that it reduces the number of operations and handling of goods. On most occasions, unloading, quality control, order conditioning and dispatch of products are maintained using automated cross-docking procedures (Datex Corporation, 2015). However, middle phase operations, such as picking and storage, disappear. This signifies that Coop Switzerland encounters fewer risks of damaging the loads, given that their management and transport within the warehouse is minimized. Moreover, by considering automated cross-docking, Coop Switzerland manages to shorten its products delivery time and makes the supply chain more agile (Dematic Europe, 2014). Automated cross-docking is recognized to save time when dispatching products, given that it simplifies the warehouse’s traditional procedures, as a result enhancing customer service. The idea of utilizing the cross-docking model assists Coop Switzerland in attaining its objective a free CO2 supply chain operations (Datex Corporation, 2015). The impact of automated cross-docking leads to power savings in terms of product transport both outside and inside the warehouse, thus, introducing an eco-friendly supply chain.
Coop, Switzerland focuses on delivering fresh products. For this reason, it is necessary to consider automated cross-docking since most products Coop Switzerland provides have a shell life of a maximum of three days. Automated cross-docking, while a relatively simple procedure, assists Coop Switzerland in increasing operational efficiency in the highly complex supply chain. Coop Switzerland utilizes this automated cross-docking since it deals with perishable and time-sensitive goods. Due to the reduced shelf life, these goods necessitate reaching retailers with a considerable remaining shelf span. By utilizing this model, Coop Switzerland has managed to gain customers due to its efficiency in delivering and quality of the products.