You are on page 1of 11

Cross Docking

A logistics activity that attempts to reduce


costs and total lead time.

Breaks down received items on the loading


dock and immediately matches them with
outgoing shipment requirements, instead of
stocking the items in warehouse locations
and returning to pick for orders at a later time.
Cross Docking…

Eliminates the need to place inventory


in storage.

The idea is to transfer incoming


shipments directly to outgoing trailers
without storing them in between.
Cross Docking…
In a traditional warehouse, goods are received
from vendors and stored in devices like racks or
shelving.

When a customer (e.g., the consumer or


perhaps a retail outlet) requests an item,
workers pick it from the shelves and send it to
the destination.
Crossdocking

B
A
A Crossdock
A
Facility

B A
B
• Receiving
• Staging (<24hr)
B Stores
• Shipping
Suppliers
4
Traditional Distribution

B
A
A A
Warehouse

B A
B
• Receiving
• Putaway
B Stores
• Storage
• Replenishment
Suppliers • Picking 5
• Shipping
Traditional Distribution

6
Crossdocking

• 550,000 warehouses in the U.S. alone


(1995 estimate)
• Crossdocking can turn warehouses
into transfer nodes, rather than storage
nodes

7
Cross Docking…
In a crossdock, goods arriving from the vendor
already have a customer assigned, so workers
need only move the shipment from the inbound
trailer to an outbound trailer bound for the
appropriate destination.

The already part should make you think of


information system requirements--a chief
obstacle to implementing crossdocking
successfully.
Cross Docking…
(classification)

In pre-distribution crossdocking, the customer is


assigned before the shipment leaves the vendor, so it
arrives to the crossdock bagged and tagged for transfer.

In post-distribution crossdocking, the crossdock itself


allocates material to its stores.
Applicability of Crossdocking
Has Increased
• Fierce competition in all
industries, especially retail
• Cooperating with supply chain
partners to reduce the system-
wide costs
• Internet allows companies to
communicate among each other
– In real time
– At costs significantly lower than
10
the past
Wal-mart

• The world’s largest retailer


• >5,000 stores throughout the world
• Popularized crossdocking

11