Uncovering the hidden benefits of cross-docking: an empirical analysis of its financial impact for European grocery retailers

Imad Jabbouri, Yassine Benrqya and Ali Chekrad

International Journal of Logistics Economics and Globalisation, 2023, vol. 10, issue 3, 259-273

Abstract: This paper aims to assess the financial implications of adopting the cross-docking strategy by European grocery retailers. It examines how cross-docking affects firms' profitability, liquidity, and operating efficiency. Through t-tests, it compares key performance indicators (KPIs) between adopters and non-adopters. Regression analysis explores if adopters' size influences outcomes. Contrary to expectations, except for inventory efficiency, results indicate no significant financial improvement from cross-docking. On average, this strategy does not notably enhance adopters' profitability and liquidity. Despite extensive research on cross-docking's benefits, prior studies lack a comprehensive analysis of its financial impact. The study evaluates cross-docking's alignment with shareholder theory, its theoretical advantages, and its applicability in grocery retail. Notably, it's the first to delve into cross-docking's financial effects on adopters.

Keywords: cross-docking; traditional warehousing; grocery retailers; financial performance; liquidity structure; profitability structure; operating efficiency structure. (search for similar items in EconPapers)
Date: 2023
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