《系统工程》课程教学资源（英文文献）Application Research of Cross Docking Logistics in Food Cold-Chain Logistics

Application Research of Cross Docking Logistics inFood Cold-Chain LogisticsGuide Words: CDL (Cross Docking Logistics); food cold-chain; new process and model designAbstract: CDL(Cross Docking Logistics), as an advanced logistic distribution strategy and a modeof operation, has the advantages of cross docking and features the distinct nature of information-basedmanagement model. As a result, CDL would bring its supply chain a high benefit on time, space andcost. This paper examines the CDL strategic application in food sale logistics based on cold-chain.The requirements and values for CDL application in food cold-chain are analyzed in detail. The basesfor CDL new strategy design, together with a novel CDL process and model based on food cold-chainare also presented. Finally, benefits that can be expected with the implementation of CDL strategy aredescribed.I.INTRODUCTIONCDL was originally known because of Wal-Mart.In 1992, an article in "Harvard BusinessReview" analyzed Wal-Mart's recipe for catching up with the opponents and winning success in sucha highly competitive retail industry. Particular emphasis was placed on the technology employed inWal-Mart's logistic system known as the cross docking. Thereafter, more and more efforts were putintorelated study concerning CDL.In recent years, in the research field of application on CDL has aroused a heated concern ofscholars. Wang Guocai, Wang Xifeng(2005) studied the CDL development in the retail chain ofindustry. They made a detailed analysis about the concept, characteristics and classification of CDL.By comparing CDL with some other distribution strategy, the author draw conclusions that retailbusiness could take advantages in time, space and cost-benefit at the same time with the application ofCDL [1]. Zhu Jia, the department manager of the world's leading logistic systems integrator Dematic(2009), designed and studied the Sachs's CDL operation mode for its planning on distribution center.With the operation of this new distribution center, Sachs had greatly reduced labor costs, shortened thedelivery cycle, and achieved all the required commitment to the demands of goods for all stores [2]CDL has been in application in some industrial areas for decades. Especially, for Western developedcountries, it have been applied successfully, mainlyfor time-sensitive or perishable goods.Food cold-chain, as a particular kind of supply chain, its strict requirements for timeliness andlow temperature demands during the whole process determine its difficult operation. Scholars havebeen seeking in the timely and high-quality strategic solutions based on the cold chain. The timeliness

Application Research of Cross Docking Logistics in Food Cold-Chain Logistics Guide Words：CDL (Cross Docking Logistics); food cold-chain; new process and model design Abstract：CDL (Cross Docking Logistics), as an advanced logistic distribution strategy and a mode of operation, has the advantages of cross docking and features the distinct nature of information-based management model. As a result, CDL would bring its supply chain a high benefit on time, space and cost. This paper examines the CDL strategic application in food sale logistics based on cold-chain. The requirements and values for CDL application in food cold-chain are analyzed in detail. The bases for CDL new strategy design, together with a novel CDL process and model based on food cold-chain are also presented. Finally, benefits that can be expected with the implementation of CDL strategy are described. I. INTRODUCTION CDL was originally known because of Wal-Mart. In 1992, an article in "Harvard Business Review" analyzed Wal-Mart’s recipe for catching up with the opponents and winning success in such a highly competitive retail industry. Particular emphasis was placed on the technology employed in Wal-Mart's logistic system known as the cross docking. Thereafter, more and more efforts were put into related study concerning CDL. In recent years, in the research field of application on CDL has aroused a heated concern of scholars. Wang Guocai, Wang Xifeng(2005) studied the CDL development in the retail chain of industry. They made a detailed analysis about the concept, characteristics and classification of CDL. By comparing CDL with some other distribution strategy, the author draw conclusions that retail business could take advantages in time, space and cost-benefit at the same time with the application of CDL [1]. Zhu Jia, the department manager of the world's leading logistic systems integrator Dematic (2009), designed and studied the Sachs’s CDL operation mode for its planning on distribution center. With the operation of this new distribution center, Sachs had greatly reduced labor costs, shortened the delivery cycle, and achieved all the required commitment to the demands of goods for all stores [2]. CDL has been in application in some industrial areas for decades. Especially, for Western developed countries, it have been applied successfully, mainly for time-sensitive or perishable goods. Food cold-chain, as a particular kind of supply chain, its strict requirements for timeliness and low temperature demands during the whole process determine its difficult operation. Scholars have been seeking in the timely and high-quality strategic solutions based on the cold chain. The timeliness

and quick connection characteristics between every chain links of CDL strategy just provide perfectsolutions for its strict time control, coordination and low-cost demands.Therefore, this paper, basedontheseavailabletheories offood cold-chainand CDL,creativelycombinestwoabove,andproposesnew model and process design of CDL strategy applications in food cold-chain. Finally, theexplorations and studies for its feasibility of implementation in this area are given.II.ANOVERVIEW OF CDLAbout CDL (Cross Docking Logistics), there is no consensus on its definition. Some academicstranslated it into cross storage operations or a direct transfer process, some others called it a directtransformation."Making the Move to Cross Docking: A Practical Guide to Planning, Designing andImplementing a Cross Dock Operation," (a book) that Maida Napolitano, the author concedes that:"CDL is almost across the life cycle of its own for storage as a strategic operation. It is a processthrough a facility to put together all the received products and others to the same place by chance, andshipthem assoonaspossible,ratherthanlong-termstorageofthem[3]"UdayMapteandS.Viswanathan believethat CDLis more an inventory strategy which ships directly from the receptionsite to send site with the shortest stay time [4]. Burt Schaffer defines CDL as: "It is a strategy to avoidhandling the product and reduce inventory through directing products to its customers [5].""People'sRepublic of China national standard terms of logistics," a book, in which Cross Docking is defined as"It is a way for logistic connection during which links, the goods are directly transferred from onemeans of transport to another without through the middle warehouse or site."From the above definition or interpretation of CDL, we probablymake a rough understanding ofwhat is CDL. I think it may limit its scope of application and research field if given the accuratedefinition of CDL. Therefore, I sum up its characteristics here below[1].First, CDL requires for the fastest speed to store and transship. With the pursuit of "zeroinventory", it is an advanced logistic strategy under the combination of JIT (just-in-time) inventorymanagement concept.Second, being an order-driven "pull" system, CDL asks for the more stable demands on basis ofmoreaccurate orders from customer needsThird, based on all participants co-operation, CDL is to realize the entire supply chaininformation exchange and sharing of resources,ultimately to improve performance and efficiency inoverall system.Fourth, CDL is an advanced logistics and distribution strategy with the basis on analysis ofcost-benefit.Fifth, CDL is a process of continuous improvement, following the PDCA (Plan-Do-Check-Act)cycle.III.NEEDSANDVALUEANALYSISOFCDLIMPLEMENTATIONINFOODCOLD-CHAINLOGISTICS

and quick connection characteristics between every chain links of CDL strategy just provide perfect solutions for its strict time control, coordination and low-cost demands. Therefore, this paper, based on these available theories of food cold-chain and CDL, creatively combines two above, and proposes new model and process design of CDL strategy applications in food cold-chain. Finally, the explorations and studies for its feasibility of implementation in this area are given. II. AN OVERVIEW OF CDL About CDL (Cross Docking Logistics), there is no consensus on its definition. Some academics translated it into cross storage operations or a direct transfer process, some others called it a direct transformation. "Making the Move to Cross Docking: A Practical Guide to Planning, Designing and Implementing a Cross Dock Operation," (a book) that Maida Napolitano, the author concedes that: "CDL is almost across the life cycle of its own for storage as a strategic operation. It is a process through a facility to put together all the received products and others to the same place by chance, and ship them as soon as possible, rather than long-term storage of them [3]." UdayMapte and S.Viswanathan believe that CDL is more an inventory strategy which ships directly from the reception site to send site with the shortest stay time [4]. Burt Schaffer defines CDL as: "It is a strategy to avoid handling the product and reduce inventory through directing products to its customers [5]." "People's Republic of China national standard terms of logistics," a book, in which Cross Docking is defined as: "It is a way for logistic connection during which links, the goods are directly transferred from one means of transport to another without through the middle warehouse or site." From the above definition or interpretation of CDL, we probably make a rough understanding of what is CDL. I think it may limit its scope of application and research field if given the accurate definition of CDL. Therefore, I sum up its characteristics here below[1]. First, CDL requires for the fastest speed to store and transship. With the pursuit of "zero inventory", it is an advanced logistic strategy under the combination of JIT (just-in-time) inventory management concept. Second, being an order-driven "pull" system, CDL asks for the more stable demands on basis of more accurate orders from customer needs. Third, based on all participants’ co-operation, CDL is to realize the entire supply chain information exchange and sharing of resources, ultimately to improve performance and efficiency in overall system. Fourth, CDL is an advanced logistics and distribution strategy with the basis on analysis of cost-benefit. Fifth, CDL is a process of continuous improvement, following the PDCA (Plan-Do-Check-Act) cycle. III. NEEDS AND VALUE ANALYSIS OF CDL IMPLEMENTATION IN FOOD COLD-CHAIN LOGISTICS

A.Characteristicsoffood cold-chainlogisticsand itsdistributionrequirementsAs a particular supply chain which qualifies the whole low-temperature control,food cold-chainlogistics is a more demanding and complex operation system than the general ones. It emphasizesenteringtherequiredtemperatureenvironment as itstarts,andallowsnooras littleas possiblepauseduring the whole process until sending to the final consumer. Therefore, besides the generalcharacteristics of supply chain,food cold-chain also follows these distinct features:First is high cost. It needs certain specialized refrigeration equipment, namely, refrigerated trucksand cold storage facilities during the cold chain food's processing, storing, distribution, sales and otherlinks. To improve the operational efficiency, it also needs to make use of advanced informationsystems. For a large investment and long payback period on cold chain constructions, it demands ahigher cost than any other supply chains.Second is the support of strong technology. To implement the temperature control management inthe whole cold-chain logistics, we must rely on advanced information technology as a solid backingto optimize all links of connection and real-time monitoring of all aspects in case cold chaintemperaturechanges.Inthisway,cold-chainlogisticscouldtrulyimprovethelevel ofservice,reducecosts,andmeetconsumerdemands.Third, the strict time and temperature control requirements. Most frozen food has a short shelf lifeand very strict temperature controls which need to turn around timely and steadily. Timeliness and lowtemperature control challenge the overall logistic service levels and operational efficiency.Fourth is the higher level of supply chain organization and coordination requirements.Transportation and distribution of perishable chilled frozen food are different from general goods. Toachieve an effective operation, it is necessary to establish a complete food cold-chain, to strictlycontrol the whole supply chain in time for peer-to-peer coordination.Given these particularities of the food chain, it asks for a high-performance logistic operationwhich is monitored in the whole process with information facilities, integrating the low-cost (profit),high-speed rate (time) and "zero inventory" connection (in space) together, which is coincided withthe five characteristics required by CDL described above. In other words, advantages of CDL on time,space and cost determine its efficient operation in cold chain. Therefore, CDL distribution strategy canbringtofood chain all-round efficiency and effectiveness on profit,timeand spaceB.ValuesandmeaningsofCDLimplementationinfoodcold-chain logistics CDL strategy in this paper will be applied in the food cold-chain logisticssystem to provide a good solution required for its demands on timeliness, coordination, costs andinformation technology control.Food cold-chain logistics is a special logistic process ofcross-industrial and multi-sectorial organic integration. CDL is an advanced distribution strategy topursue and improve the overall supply chain system performance and efficiency. It takes "zeroinventory" as its ultimate goal with the basis on JIT concept and a more accurate orders based on

A. Characteristics of food cold-chain logistics and its distribution requirements As a particular supply chain which qualifies the whole low-temperature control, food cold-chain logistics is a more demanding and complex operation system than the general ones. It emphasizes entering the required temperature environment as it starts, and allows no or as little as possible pause during the whole process until sending to the final consumer. Therefore, besides the general characteristics of supply chain, food cold-chain also follows these distinct features: First is high cost. It needs certain specialized refrigeration equipment, namely, refrigerated trucks and cold storage facilities during the cold chain food’s processing, storing, distribution, sales and other links. To improve the operational efficiency, it also needs to make use of advanced information systems. For a large investment and long payback period on cold chain constructions, it demands a higher cost than any other supply chains. Second is the support of strong technology. To implement the temperature control management in the whole cold-chain logistics, we must rely on advanced information technology as a solid backing, to optimize all links of connection and real-time monitoring of all aspects in case cold chain temperature changes. In this way, cold-chain logistics could truly improve the level of service, reduce costs, and meet consumer demands. Third, the strict time and temperature control requirements. Most frozen food has a short shelf life and very strict temperature controls which need to turn around timely and steadily. Timeliness and low temperature control challenge the overall logistic service levels and operational efficiency. Fourth is the higher level of supply chain organization and coordination requirements. Transportation and distribution of perishable chilled frozen food are different from general goods. To achieve an effective operation, it is necessary to establish a complete food cold-chain, to strictly control the whole supply chain in time for peer-to-peer coordination. Given these particularities of the food chain, it asks for a high-performance logistic operation which is monitored in the whole process with information facilities, integrating the low-cost (profit), high-speed rate (time) and "zero inventory" connection (in space) together, which is coincided with the five characteristics required by CDL described above. In other words, advantages of CDL on time, space and cost determine its efficient operation in cold chain. Therefore, CDL distribution strategy can bring to food chain all-round efficiency and effectiveness on profit, time and space. B. Values and meanings of CDL implementation in food cold-chain logistics CDL strategy in this paper will be applied in the food cold-chain logistics system to provide a good solution required for its demands on timeliness, coordination, costs and information technology control. Food cold-chain logistics is a special logistic process of cross-industrial and multi-sectorial organic integration. CDL is an advanced distribution strategy to pursue and improve the overall supply chain system performance and efficiency. It takes "zero inventory" as its ultimate goal with the basis on JIT concept and a more accurate orders based on

customer needs,to coordinate an active participation of all parties in this chain.It stresses theimportanceof goods'timely operation throughout thedistribution process.The process uses advancedinformation technology to control and coordinate the food distribution directly from the storagesystem to process on the way. As a result, the operation of the entire supply chain is efficient andorderly.It could be predicted that introducing CDL in food cold-chain and providing high-quality logisticservices of CDL will be strong supports for its further development of cold-chain logistics on boththeory and practice.It is so significant to follow such a trend of safety, information technology andstandardization on the development of food and logistic industries. On the basis of systematicre-examine, the entire food cold-chain can be a real mobilization developed by leaps and bounds.IV.FUNDAMENTALPRINCIPLESFORFOODCOLD-CHAINLOGISTICSDESIGNWITHCDLA."Postponement"distribution strategyCDL is a customer orders pull-based supply chain, whose successful implementation largelydepends on the stability of the market demand orders. With the increasing trend of personalization andconvenience customers show on food, it is difficult to directly predict the ever-changing needs ofconsumers in case to carry out pre-production reserves. Waiting for the orders from the market willlonger the pre-production period. This extended time does not match the preferences showed bycustomers to the rapidly change on food. Therefore, the use of postponement strategy can effectivelysolve this problem. By designing food and production, the differentiation process in the postponementstrategy will be delayed after receiving the orders by consumers. That is to separate particularprocesses from the universal ones in food production. Before the separation point, the production is apredictable, high-volume one with a large scale of profit, and after it, is a personalized value-addedservicereliedonthedifferentcustomersneeds.In view of the timeliness and benefits in food cold-chain, we should try to postpone the separationpoint, that is, in case to longer the scale production stageB."Flat" principle in supply chainThere are many participants in food cold-chain, which stands a wide scope in market, involvingmany different types of chain inform of logistic network.From views of time, the timewindowrequirements mostly exist in food cold-chain. Its timeliness characteristics mutually demand theseamless connection of each link and more accurate, timely transportations and distribution processes.Therefore, it should be as much as possible to shorten the length of entire cold chain. From theeffectiveness of information transmission in supply chain, it should avoid the"Bullwhip Effect""Bullwhip Effect" is a vivid description of a distorted image about demand information transmitted insupply chain. Its basic idea is: When each participant in supply chain is solely dependent on theinformation from its adjacent lower counterpart to product or make decisions, the unreal information

customer needs, to coordinate an active participation of all parties in this chain. It stresses the importance of goods’ timely operation throughout the distribution process. The process uses advanced information technology to control and coordinate the food distribution directly from the storage system to process on the way. As a result, the operation of the entire supply chain is efficient and orderly. It could be predicted that introducing CDL in food cold-chain and providing high-quality logistic services of CDL will be strong supports for its further development of cold-chain logistics on both theory and practice. It is so significant to follow such a trend of safety, information technology and standardization on the development of food and logistic industries. On the basis of systematic re-examine, the entire food cold-chain can be a real mobilization developed by leaps and bounds. IV. FUNDAMENTAL PRINCIPLES FOR FOOD COLD-CHAIN LOGISTICS DESIGN WITH CDL A. "Postponement" distribution strategy CDL is a customer orders pull-based supply chain, whose successful implementation largely depends on the stability of the market demand orders. With the increasing trend of personalization and convenience customers show on food, it is difficult to directly predict the ever-changing needs of consumers in case to carry out pre-production reserves. Waiting for the orders from the market will longer the pre-production period. This extended time does not match the preferences showed by customers to the rapidly change on food. Therefore, the use of postponement strategy can effectively solve this problem. By designing food and production, the differentiation process in the postponement strategy will be delayed after receiving the orders by consumers. That is to separate particular processes from the universal ones in food production. Before the separation point, the production is a predictable, high-volume one with a large scale of profit, and after it, is a personalized value-added service relied on the different customers’ needs. In view of the timeliness and benefits in food cold-chain, we should try to postpone the separation point, that is, in case to longer the scale production stage. B. "Flat" principle in supply chain There are many participants in food cold-chain, which stands a wide scope in market, involving many different types of chain in form of logistic network. From views of time, the time window requirements mostly exist in food cold-chain. Its timeliness characteristics mutually demand the seamless connection of each link and more accurate, timely transportations and distribution processes. Therefore, it should be as much as possible to shorten the length of entire cold chain. From the effectiveness of information transmission in supply chain, it should avoid the "Bullwhip Effect". "Bullwhip Effect" is a vivid description of a distorted image about demand information transmitted in supply chain. Its basic idea is: When each participant in supply chain is solely dependent on the information from its adjacent lower counterpart to product or make decisions, the unreal information

(reflected in form of distorted information) will go up along the supply chain, resulting in aphenomenonofamplificationoneachlevel.Fromtheperspectiveof optimizingtheentire supplychain, the best way to avoid the bullwhip effect is to make the entire food chain as flat as possible.Measures must betaken, like,establishing the information-based sharingplatforms between themainparticipants in supply chain, or using pull-type production model, to shorten the operating processes.V. DESIGNAND ANALYSISOFNEW PROCESSESAND MODELFORFOOD SALELOGISTICSONCOLD-CHAINWITHCDLA.Designconceptoffood cold-chain logisticsAs a special form of supply chain, food cold-chain logistics is a systematic engineering which is aprocess of perishable or frozen food, from raw materials acquisition, through production, processing.storage, transportation, sales, to final consumers. This kind of engineering demands a consistentlylow-temperature environment during the entire process. The flowing process in cold chain is also fromthesupplier'ssuppliertotheuser'suser,but itsuniqueness lies inthefactthattherequirement coldchain asks for on temperature and time control is much higher.More emphasis should begiven inprocesstomeet itsdemands of seamless connectionunderexactingtemperaturecontrol.Thereexistboth technical and administrational requirements in food cold-chain logistics.B.Basic processes design for food sale logistics on cold-chain with CDLI) New processes design and analysis of the overall operation in food sale logistics Figure 1below describes the new food sale logistic processes with CDLIt can be seen fromFigure 1, theentire supply chain process can be divided into two modules: the information module; thetransportation and distribution of goods module. In the information module: First, through network thestores and supermarkets send the demand information (based on their analysis on sales) to theInformation Center (IC) which belongs to its Distribution Center, Then, the IC aggregates all theorders (demand information) from its stores and supermarkets. After that, the IC of Distribution go onto send its processed information to its upper IC of processors, suppliers and manufacturers with theirsharing of EDI, RFID system; Having an analysis of related data (e.g. POS) from all stores andsupermarkets before,suppliers can advancetheproductionprocess to improvethe overall abilitytorespond in chains; After receiving orders from its Distribution Center, the IC of processors, suppliersneeds to send ASN (Advance Shipping Notice) to its downstream IC of Distribution. As a result.suppliers can begin the goods delivery process based on the orders.In the transportation and distribution of goods module:After receiving ASN, the IC ofDistribution first makes arrangements for the preparation, and then do work for arrival goods orderlysuch as processing, aggregation, secondary transportation, sorting, packaging and re-distribution.Finally is a delivery of goods to all stores and supermarkets timely and accurately until reaching thehands of consumers. Usually, the time of goods delivery duringCDL processes must not allow exceeding 24 hours. Throughout the entire cold chain processes, it

(reflected in form of distorted information) will go up along the supply chain, resulting in a phenomenon of amplification on each level. From the perspective of optimizing the entire supply chain, the best way to avoid the bullwhip effect is to make the entire food chain as flat as possible. Measures must be taken, like, establishing the information-based sharing platforms between the main participants in supply chain, or using pull-type production model, to shorten the operating processes. V. DESIGN AND ANALYSIS OF NEW PROCESSES AND MODEL FOR FOOD SALE LOGISTICS ON COLD-CHAIN WITH CDL A. Design concept of food cold-chain logistics As a special form of supply chain, food cold-chain logistics is a systematic engineering which is a process of perishable or frozen food, from raw materials acquisition, through production, processing, storage, transportation, sales, to final consumers. This kind of engineering demands a consistently low-temperature environment during the entire process. The flowing process in cold chain is also from the supplier's supplier to the user's user, but its uniqueness lies in the fact that the requirement cold chain asks for on temperature and time control is much higher. More emphasis should be given in process to meet its demands of seamless connection under exacting temperature control. There exist both technical and administrational requirements in food cold-chain logistics. B. Basic processes design for food sale logistics on cold-chain with CDL 1) New processes design and analysis of the overall operation in food sale logistics Figure 1 below describes the new food sale logistic processes with CDL. It can be seen from Figure 1, the entire supply chain process can be divided into two modules: the information module; the transportation and distribution of goods module. In the information module: First, through network the stores and supermarkets send the demand information (based on their analysis on sales) to the Information Center (IC) which belongs to its Distribution Center; Then, the IC aggregates all the orders (demand information) from its stores and supermarkets. After that, the IC of Distribution go on to send its processed information to its upper IC of processors, suppliers and manufacturers with their sharing of EDI, RFID system; Having an analysis of related data (e.g. POS) from all stores and supermarkets before, suppliers can advance the production process to improve the overall ability to respond in chains; After receiving orders from its Distribution Center, the IC of processors, suppliers needs to send ASN (Advance Shipping Notice) to its downstream IC of Distribution. As a result, suppliers can begin the goods delivery process based on the orders. In the transportation and distribution of goods module: After receiving ASN, the IC of Distribution first makes arrangements for the preparation, and then do work for arrival goods orderly such as processing, aggregation, secondary transportation, sorting, packaging and re-distribution. Finally is a delivery of goods to all stores and supermarkets timely and accurately until reaching the hands of consumers. Usually, the time of goods delivery during CDL processes must not allow exceeding 24 hours. Throughout the entire cold chain processes, it

isnecessarytorunthetemperaturecontrol systemtotimelyensurethetemperatureofrefrigeratedfood under proper regulations and control. In addition, the EDI, RFID information systems also makesurethat goods canbe transferred toits destination in their scheduled time accurately.Meanwhile,thereal-time monitoring is provided to do a good job in seamless connection between each link.EDL.RFIDASNhfomatiofamtomaoENEcetercetecertercerteren&edemandaeTemperstmecontrolsystemReverselogitics (produitpedkaghngrecycling)Figure 1. Process chart in food sale logistic operation2)AnalysisoftheinternalworkflowinCDLdistributioncenterDistribution center is a most important part for its creative concept of CDL. Figure 2 depicts theinternal workflow in CDL distribution center. From Figure 2, it can be seen that the whole operationcan be divided into three main parts: in-bound, cross-docking and out-bound logistics. First of all, thefood-processing center (PC) delivers all goods to the distribution center (DC). After receiving goodsfrom PC, DC gives feedback immediately to PC.Then follows the processes such as checkingmonitoring, pre-cooling and integration on food; Next, classify the food to satisfy the required foodtemperature demands according to different requirements in temperature layers; Then is to packagefood for distinct sites and do confirmation again. After that, send them out immediately to their finaldestination by using refrigerated trucks.Throughout the whole operation in Distribution Centers of CDL, it is necessary to establishsophisticated temperature control systems and EDI, RFID information systems to meet the highdemands for frozen food on temperature, time and effective coordination. CDL strategy highlights theprocess in which food is delivered directly out of storage to Distribution Center. By cross dockingCDL could greatly reduce the operating costs of enterprises, and ultimately to bring about idealeconomic benefits under implementation

is necessary to run the temperature control system to timely ensure the temperature of refrigerated food under proper regulations and control. In addition, the EDI, RFID information systems also make sure that goods can be transferred to its destination in their scheduled time accurately. Meanwhile, the real-time monitoring is provided to do a good job in seamless connection between each link. Figure 1. Process chart in food sale logistic operation 2) Analysis of the internal workflow in CDL distribution center Distribution center is a most important part for its creative concept of CDL. Figure 2 depicts the internal workflow in CDL distribution center. From Figure 2, it can be seen that the whole operation can be divided into three main parts: in-bound, cross-docking and out-bound logistics. First of all, the food-processing center (PC) delivers all goods to the distribution center (DC). After receiving goods from PC, DC gives feedback immediately to PC. Then follows the processes such as checking, monitoring, pre-cooling and integration on food; Next, classify the food to satisfy the required food temperature demands according to different requirements in temperature layers; Then is to package food for distinct sites and do confirmation again. After that, send them out immediately to their final destination by using refrigerated trucks. Throughout the whole operation in Distribution Centers of CDL, it is necessary to establish sophisticated temperature control systems and EDI, RFID information systems to meet the high demands for frozen food on temperature, time and effective coordination. CDL strategy highlights the process in which food is delivered directly out of storage to Distribution Center. By cross docking, CDL could greatly reduce the operating costs of enterprises, and ultimately to bring about ideal economic benefits under implementation

h-bCross-dedchngOuthemEDIRFIDmloadingsortinehssifypackagineRPnaticnEtracknCeolHightaparaturelyeCeodsLevtanperatarelayannterRfOdTotesVaCRefrigenteTemperatmecoritrolsystemFigure2.Workflowchart inCDLdistributioncenterVILSIGNIFICANTBENEFITSBROUGHTABOUTINFOODCOLD-CHAINLOGISTICSWITHTHESUCCESSFULIMPLEMENTATIONOFCDLCDL was initially well known because of Wal-Mart. After the introduction of CDL, Wal-Mart'smarket shareand profitmarginshad improved significantly.Stalk etal.(1992)pointed out:"CDLisacore competence strategy.The use of CDLis a mainreason for our more total salesthanK-Mart's.It isprecisely because Wal-Mart implement CDL that it wins a decrease on the whole inventory so that itcan make ‘the lowest price every day, the slogan of the competition. "At present, CDL has existed in a lot of business strategies. Consideration about characteristics offoodcold-chainandsomerealbusinessexperience,itcanbesurethatsuccessfulCDLimplementationin food cold-chainwill bringthe following advantages:Firstly,thisdistributionmodel isfullyconsistent with JIT strategy which could provide the in-time protection for its enterprises, SecondlyCDL can reduce unnecessary storage,saveinventory space and make a reduction on inventory,distribution, and human costs. This implementation pursuits a huge cost advantagefor cold chain; Moreover with CDL, it could shorten the processes of goods shelves, picking, packingand other operations. In this way, it speeds up the turnover rate of goods flow, and meets the highdemand on time, ultimately to achieve rapid response to customer needs; At the same time, thedistribution center's space would also saved; Finally,the information system construction of cDLprovides a basically strong infrastructure and theoretical support for the entire temperature controlsystem in food cold-chain as well as the full information technology in chain.With the long-term successful implementation of CDL, business is also expected to receive thefollowing potential benefits:(1)good relationship established between supply chain partners bypromoting the cooperative relations between suppliers, manufacturers and marketers; (2) reduce thewhole supply chain system costs; (3) enhance the operational efficiency in supply chain; (4) have aconstant, rapid response to meet and satisfy the customer needs. From the perceptive of CDL

Figure 2. Workflow chart in CDL distribution center VI. SIGNIFICANT BENEFITS BROUGHT ABOUT IN FOOD COLD-CHAIN LOGISTICS WITH THE SUCCESSFUL IMPLEMENTATION OF CDL CDL was initially well known because of Wal-Mart. After the introduction of CDL, Wal-Mart's market share and profit margins had improved significantly. Stalk et al. (1992) pointed out: "CDL is a core competence strategy. The use of CDL is a main reason for our more total sales than K-Mart's. It is precisely because Wal-Mart implement CDL that it wins a decrease on the whole inventory so that it can make ‘the lowest price every day,’ the slogan of the competition. " At present, CDL has existed in a lot of business strategies. Consideration about characteristics of food cold-chain and some real business experience, it can be sure that successful CDL implementation in food cold-chain will bring the following advantages: Firstly, this distribution model is fully consistent with JIT strategy which could provide the in-time protection for its enterprises; Secondly, CDL can reduce unnecessary storage, save inventory space and make a reduction on inventory, distribution, and human costs. This implementation pursuits a huge cost advantage for cold chain; Moreover with CDL, it could shorten the processes of goods shelves, picking, packing and other operations. In this way, it speeds up the turnover rate of goods flow, and meets the high demand on time, ultimately to achieve rapid response to customer needs; At the same time, the distribution center's space would also saved; Finally, the information system construction of CDL provides a basically strong infrastructure and theoretical support for the entire temperature control system in food cold-chain as well as the full information technology in chain. With the long-term successful implementation of CDL, business is also expected to receive the following potential benefits: (1) good relationship established between supply chain partners by promoting the cooperative relations between suppliers, manufacturers and marketers; (2) reduce the whole supply chain system costs; (3) enhance the operational efficiency in supply chain; (4) have a constant, rapid response to meet and satisfy the customer needs. From the perceptive of CDL

applications in global business during recent years, its advantages in time, space and costs can largelyenhance the competitiveness of business itself, which is an inevitable choice for Chinese enterprisesfacingsuchafiercecompetition in themarket.VII.CONCLUSIONAs an advanced logistic strategy, CDL has achieved significant economic benefits, arousing aheated concern among growing numbers of enterprises and scholars. Appling CDL in food cold-chainlogistics is still an emerging area of research, but also filled with great challenge. First of all, itssuccessful operation asks for a higher level of information technology management, supply chainmanagement and operational capability, and most important of all, an advanced large-scale logisticinfrastructuresupport.A large scale of CDL implementation will bring about certain risk without a good fundamentalexperience on logistics and management. These special conditions concerning implementation abovewould be an important direction for the development of CDL in further research. With the economicdevelopment and advancement of technology in China, the applications of CDL in food cold-chainlogistics will become the majormodeof operation for cold chainmanagement in the near future

applications in global business during recent years, its advantages in time, space and costs can largely enhance the competitiveness of business itself, which is an inevitable choice for Chinese enterprises facing such a fierce competition in the market. VII. CONCLUSION As an advanced logistic strategy, CDL has achieved significant economic benefits, arousing a heated concern among growing numbers of enterprises and scholars. Appling CDL in food cold-chain logistics is still an emerging area of research, but also filled with great challenge. First of all, its successful operation asks for a higher level of information technology management, supply chain management and operational capability, and most important of all, an advanced large-scale logistic infrastructure support. A large scale of CDL implementation will bring about certain risk without a good fundamental experience on logistics and management. These special conditions concerning implementation above would be an important direction for the development of CDL in further research. With the economic development and advancement of technology in China, the applications of CDL in food cold-chain logistics will become the major mode of operation for cold chain management in the near future