Cross-Dock Consolidation for European Distribution: Case Study of Covestro's Barcelona Manufacturing Network

Abstract

This thesis has been developed to investigate the potential implementation of a crossdocking model for Covestro Spain, a multinational corporation specializing in polymeric materials. The primary objective is to enhance supply chain efficiency and reduce costs across the European network, with a focused analysis of three production plants located around Barcelona. The study addresses inefficiencies in the current logistics operations, specifically the underutilization of truck capacities, which inflates logistical costs and undermines competitive positioning. The research encompasses a thorough evaluation of the existing logistics framework using historical shipment data from previous years. It includes a simulation of cross-docking implementation to contrast with the current system and identify potential cost benefits. The analysis aims to provide a detailed comparison of historical versus hypothetical costs and assess the economic feasibility of adopting a cross-docking system. The specific objectives involve analyzing the existing logistics system, simulating the implementation of a cross-docking model, comparing the current system with the proposed cross-docking scenario, and forecasting future shipping costs to assess potential cost savings and the overall financial viability of the new logistics strategy. The outcomes of this study are intended to inform on the practicality and advantages of integrating a cross-docking strategy, ultimately aiming to optimize logistics operations and achieve long-term economic efficiency.