What is cross docking, Importance and role And its types

1. Presented By:
Ankita Bhor (003)

2. What is Cross Docking?
Cross docking is a practice in logistics management that includes unloading incoming
delivery vehicles and loading the materials directly into outbound delivery vehicles,
omitting traditional warehouse logistical practices and saving time and money.
Source: https://www.creativesafetysupply.com/articles/understanding-cross-docking/

3. Cross docking terminal

4. Source: https://www.creativesafetysupply.com/articles/understanding-cross-docking/

5. Implementation of Crossdocking
1) The CDO and the supplier receive order details from the retailer store.
2) If pre-allocated supplier consolidation is carried out: The supplier builds store specific
pallets and label.
If Post allocated CDO consolidation is carried out: The supplier prepares just single-SKU pallets.
If pre-allocated CDO consolidation is carried out: Each case in the pallet should include the
information of which specific store it is heading on a label.
3) The supplier loads the truck that will deliver the shipment to the cross dock facility.
4) The supplier sends the Advance Shipping Notice (ASN) to the CDO.
5) The carrier notifies the CDO on the arrival date and time.
6) The labor and handling equipment are scheduled to meet the delivery.
7) The dock door for outbound shipment is determined.

6. 8) The outbound carrier is notified of the pick-up time, load
description, destination, and delivery date and time.
9) The retailer store is notified of the outbound shipment details.
10) The truck with the supplier's delivery reaches the cross dock facility.
11) Manual checks are performed on a small percentage of the supplier's delivery,
to ensure accuracy of the ASN.
12) If pre-allocated supplier consolidation is carried out, then the pallets in the
inbound shipment are transferred to outbound dock door ruck Otherwise pallets
are broken into cases, allocated to open orders per destination (in the case of
post- allocated CDO consolidation), sorted with respect to each retailer store, and
loaded to the outbound truck from the outbound dock door.
13) The outbound truck leaves the cross dock facility and delivers to the retail store.

7. Source: https://www.creativesafetysupply.com/articles/understanding-cross-docking/

8. Industries in which cross docking applied?
1. Retail Industry : Walmart, Track ‘n’ Trail, Canadian Tires
1. Third Party Logistics Companies
- Columbian Logistics serves a large grocery wholesaler by consolidating paper products
from four large manufacturers, and distributing them to approximately 200 stores.
- 3 PL companies in the U.S. alone were estimated to gross about $56 billion.
3. Automative industry
Toyota distribution center in California : Reduced lead times of spare parts from Japan to
customers from 25 days to 11 days. Approximately one-third of the estimated 250,000
transactions made per day are cross docked.
4. Telecommunications and electronics industries
- Characterized by a fast pace of change
- Thompson Consumer Electronics, Panasonic, Ericsson, and National Semiconductor

9. Benefits of Crossdocking
1. Allows the efficient consolidation of products.
2. Decreases inventory levels due to elimination of storage.
3. Enables faster product flow.
4. Enables more frequent deliveries.
5. Decreases inventory obsolescence due to reduced inventory and faster product flow.
6. Decreases labor requirements and costs due to decreased material handling.
7. Decreases the amount of space required, and thus increases the handling capacity of
the facility.

11. Disadvantages of cross-docking
 Much management attention, time and planning is necessary to make it work
effectively.
 Setting up the cross docking terminal structures would take quite a bit of time
and capital to start with.
 Some suppliers would not be able to deliver customer ready products to the
cross docking terminal.
 A sufficient number of transport carriers are necessary for the cross docking
terminal to run smoothly, therefore is mainly dependent on trucking.
 A high volume of product is necessary to be cost effective.
 The organization has to have a comfortable reliance that their suppliers will
deliver the right product in its right amount to the cross docking terminal on time
which doesn’t leave too much room for error.

12. Ekol Logistics
• leading 3rd party logistics (3PL) firm
• Major crossdock operator (CDO) in Turkey
• 7 distribution centers (DCs) in Istanbul, Turkey alone
and 3 other warehouses in other cities in Turkey
• Total warehouse area of 120,000 m²
• Clients
- International mass retailers
- Apparels and home products retailer
- Sportswear retailer
- Home electronics company
- Pharmaceuticals company

14. • Mostly pre-allocated CDO consolidation (type 2 crossdocking)
• Pre-allocated supplier consolidation (type 1 crossdocking) only for two major international FMCG
companies
- 30% of the volume
- Most suppliers do not wish to sort out and label their products as pallets before sending them to Ekol's
DCs
- Quality control requirements
• Also traditional warehousing in the same facility
Ekol Logistics A "project firm“
- Work with clients for determining customized solutions
- Compute the increase in costs and lead times if type 2 crossdocking is carried out instead of type 1
crossdocking
- Quantify the increase in costs and lead time when traditional warehousing is carried out instead of
crossdocking

15. 1. Receiving non-palletized shipments
2. Meeting the delivery requirements
3. Assuring delivery quality
4. Delayed deliveries
5. Lack of planning by some of the clients
6. Facility limitations
7. Seasonality in products
8. Quality concerns
9. Customs regulations
10. Sports shoes pass through Halkali Customs Office, whereas sports shoes
are categorized as shoes and pass through Tuzla Customs Office
11. Traffic regulations
12. Very short time span available for decision making
: Challenges