You are on page 1of 14

CROSS

DOCKING
Present
A logistic activity that attempts to
reduce cost and 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 an returning to
pick for orders at a later time
Assignment 4
Cross Docking Receiving
Put away
Traditional Storage
Replenishment
Warehouse Process Picking
Shipping
600

500

400

300

200

100

0
Group 1 Group 2 Group 3
Assignment 4
Cross Docking

TRADITIONAL WAREHOUSE When a customer request an


In Traditional Warehouse goods item, workers pick it from the
are received from vendors and shelves and send it to the
stored in devices like racks or
destination
shelving.

Cross-docking is a practice in logistics of unloading materials from an incoming semi-trailer truck or railroad car and loading
these materials directly into outbound trucks, trailers, or rail cars, with little or no storage in between them.
Eliminates the need to place inventory in storage

100%
The idea is to to transfer
incoming shippments
Reduce Cost Save Time directly to outgoing

Save money Satisfaction


trailers without storing
them in between.
Assignment 04
Cross docking

Cross-docking used?
The process of cross docking will not suit every warehouses needs, it is
therefore important to make an informed decision as to whether
cross-docking will increase the productivity, costs and customer
satisfaction for your specific business.

Unpreserved or temperature controlled

100% 1 items such as food which need to be


transported as quickly as possible can be
benefitted by this process

100%
Already packaged and sorted products
2 ready for transportation to a particular
customer can become a faster and more
efficient process through cross docking.

3
Cross-docking is also
100% often used when handling time
sensitive and perishable inventory
Assignment 4
Cross Docking Post Distribution
Pre- Distribution
 With Pre-Distribution In the Post-Distribution process,
sorting is deferred until the
cross-docking, goods are
cross-docking facility and
unloaded, sorted, and customers are chosen based on
repacked according to demand. That means that goods
pre-determined may spend a little more time in
distribution instructions. the distribution or cross-docking
In other words, the facility, but retailers and
customer is identified suppliers benefit from the
before the goods even additional time to make smarter,
informed decisions about where
leave the supplier.
to ship their goods based on in-
store inventory, sales forecasts
and point of sale trends.

Cross-docking can be further broken-down into two basic forms: Pre-Distribution


and Post-Distribution
Assignment 4
Cross docking

Types of Cross Docking


There are a number of cross-docking scenarios that are available to the  management warehouse management. Companies
will use the type of cross-docking that is applicable to the type of products that they are shipping.

Manufacturing Cross-Docking
Distributor Cross-Docking
Transportation Cross-Docking

Retail Cross-Docking

Opportunistic Cross-Docking
Assignment 4
Cross Docking

Risks Associated with Cross-Docking


Because products aren't put away
Cross-docked items are not in the company's prescribed
put away in the company's fashion during cross-docking,
prescribed fashion, that does there's an increased risk related to A
not lessen the need to loss of inventory control by using
account for those goods the method the long term.
while accounting for stock
and reconciling supplier and To implement cost-docking
customer invoices.  effectively, warehouse and
supply chain managers should
put into place robust inventory
control processes and train
warehouse employees on those
processes
B
Advantages
Cross Docking

Control - Companies get to direct product levels at a


Just in Time - Cross docking is often used for just-in-
much more detailed level. This ensures each retail
1 outlet gets exactly what it needs to meet customer 3 time manufacturing where supplies are delivered
where they are needed as they are needed to
demands, no more and no less.
ensure there is no excess storage of parts or
products.

Lower Warehousing Costs - With this type of Reduced Labor Costs - With less storage and
2 distribution strategy in place, there is much less need
for warehousing products, which saves companies 4 warehousing, there is less need for people
handling the products, which can help drive
money. down labor costs.
Assignment 4
Cross Docking

600

500

400

300

200

100

0
Group 1 Group 2 Group 3

Implementation
Assignment 4
Cross Docking

Using advanced machines that can read bar codes, QR codes, or RFID tags that are placed on incoming products and then sorting them
automatically, for example, is a great way to automate much of the receiving and sorting process. Very advanced facilities, such as those run
by UPS, have nearly 100% automation from the time packages are unloaded from one truck all the way through to the point where they are
loaded onto an outgoing truck.

Cross-docking
 is also often used when handlingimportant.
s methodologies time sensitive and
perishable inventory.

Due to the reduced shelf life, inventory


needs to reach retailers with a reasonable
remaining shelf life.
Assignment 4
Cross Docking

Thankyou

You might also like