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These days
competitive market get to be high more than before such as logistic it’s
important to provide a unique service which will meet customer needs, improve
competitive advantage, logistic advantage and save cost. So, Walmart was one of
the first companies to use cross-docking to meet the above advantage.  Cross-docking it’s an activity related to
logistics that include inventory items such as R.M (raw material), components
or finish product from a supplier directly distributed to the users, they could
be a retailer or the end user consumer. In a cross-docking, the inventory is
stored for short time or go directly to the next distribution. The proses of
cross-docking are easy and can show the cost saving for example 3 truck arrive
at logistic center one carrying laptop, other carrying shoes and the last one
carrying phones all of these 3truks are needed by Walmart immediately. The
suppliers of these 3 products are shipped only the needed quantity for each
Walmart stores spritely quickly before the inventory level are reached zero,
which is better than ship a large no need quantity when this truck arrives the
inventory has unloaded the products directly to outbound trucks without storing
them in the distribution center.

As cross-docking
help products move more quickly and efficiently in the supply chine. Walmart
has been able to increase the volume of its inventory. Moreover, Walmart
negotiates their vendors for better price margins so less vendor price will
lead to a low cost to the customer. As cross docking leads to less area for
storage (shelf space) which will lead to reducing the worker needs of Walmart
facility and the associated cost. Due to the little need for storage in the
distribution center, the cost is related to storing inventory it’s also reduced
which will lead to reducing the material handling cost like loading, and
unloading. With cross docking Walmart can easily monitor the product quality,
especially in the proses of unloading, the staff can easily inspect damaged
inventory during the transit this will help to reduce the amount of damages
inventory reached to the customer. The reduction of material handling leads
directly to labor cost saving, this allows Walmart to offer low price products.

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