Cross DockingA logistics activity that attempts to reducecosts and total lead time.Breaks down received items on the loadingdock and immediately matches them withoutgoing shipment requirements, instead ofstocking the items in warehouse locationsand returning to pick for orders at a later time.
Cross Docking…Eliminates the need to place inventoryin storage.The idea is to transfer incomingshipments directly to outgoing trailerswithout storing them in between.
Cross Docking…In a traditional warehouse, goods are receivedfrom vendors and stored in devices like racks orshelving.When a customer (e.g., the consumer orperhaps a retail outlet) requests an item,workers pick it from the shelves and send it tothe destination.
Crossdocking B A A Crossdock A Facility B A B • Receiving • Staging (<24hr) B Stores • ShippingSuppliers 4
Traditional Distribution B A A A Warehouse B A B • Receiving • Putaway B Stores • Storage • ReplenishmentSuppliers • Picking 5 • Shipping
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 vendoralready have a customer assigned, so workersneed only move the shipment from the inboundtrailer to an outbound trailer bound for theappropriate destination.The already part should make you think ofinformation system requirements--a chiefobstacle to implementing crossdockingsuccessfully.
Cross Docking… (classification)In pre-distribution crossdocking, the customer isassigned before the shipment leaves the vendor, so itarrives to the crossdock bagged and tagged for transfer.In post-distribution crossdocking, the crossdock itselfallocates 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