Cross docking is a logistics activity that reduces costs and lead time. It involves breaking down received items on the loading dock and immediately matching them with outgoing shipment requirements instead of storing items in a warehouse. This eliminates the need to place inventory in storage. Goods arriving from vendors already have a customer assigned, so workers simply move shipments from inbound to outbound trailers bound for the appropriate destination. There are two types - pre-distribution where items arrive tagged for transfer, and post-distribution where the crossdock allocates material to stores. Major retailers like Walmart have popularized crossdocking to reduce costs in their supply chains.

1. 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.

2. 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.

3. 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.

4. Crossdocking
B
A
A Crossdock
A
Facility
B A
B
• Receiving
• Staging (<24hr)
B Stores
• Shipping
Suppliers
4

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

6. Traditional Distribution
6

7. Crossdocking
• 550,000 warehouses in the U.S. alone
(1995 estimate)
• Crossdocking can turn warehouses
into transfer nodes, rather than storage
nodes
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8. 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.

9. 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.

10. 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
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the past

11. Wal-mart
• The world’s largest retailer
• >5,000 stores throughout the world
• Popularized crossdocking
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