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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"I hear a lot of people talk about mitigating supply chain risk but we rarely get a chance to give readers a clear-cut example of a company that's actually done it [...] JCPenney has combined old-school strategy, proper site selection, and a state-of-the art, energy-efficient sortation system to achieve what many have only discussed in board rooms."¹

- Bob Trebilcock, Executive Editor, Modern Materials Handling², in 2009.

Introduction

In July 2007, JCPenney Corporation, Inc. (JCP), a leading retail chain in the US, opened its sixth cross-dock facility in Lathrop, California. Experts felt that a peek into the Lathrop facility provided a very good glimpse of how JCP had developed cross-docking operations using sophisticated software and controls.

And how cross-docking had helped the retail chain reduce materials handling and made logistics efficient. The Lathrop facility was a state-of-the-art facility that was efficient, required less maintenance and energy.

It was one example of the importance JCP attached to improved inventory flow and cycle time reduction (Refer to Box I for objectives of better merchandise flow at JCP).

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

1] Michael Levans, "This Month in Modern: JCPenney's Crossdocking Genius," www.mmh.com, October 1, 2009.

2] Modern Materials Handling is a print B2B magazine published by Reed Business Information. The magazine focuses on topics related to the materials handling side of the supply chain.


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