Implementation of a Cross Docking System to Coca Cola Beverages Sri Lanka

Abstract

The Coca Cola Beverages Sri Lanka Limited is a leading multinational carbonated soft drink manufacturer in Sri Lanka. It is involved in almost the entire supply chain process; from manufacturing to distribution. Therefore use of proper supply chain management practices is essential. Warehousing and distribution which is a main part of the supply chain plays a vital role in its operation. Since all the finished goods have to be delivered to distributors around the country, its transportation cost is considerably high. The aim of this research is to reduce transportation cost by implementing the supply chain management concept of cross docking. Secondary data collected from company records and systems were used for the analysis. The current transportation cost and the transportation cost through the cross docking center is calculated and analyzed through a comparison. Then a cost benefit analysis is done to analyses the feasibility. Through the analysis it is concluded that it is feasible to use the concept of cross docking and many additional benefits which include time saving, better service levels and reduction of contribution to the carbon foot print. Finally recommendations are given to establish and carry out the cross docking operations.