Cross Docking in Supply Chain Management
What is cross docking?
Cross docking is a logistics procedure where products from a supplier or manufacturing plant are distributed directly to a customer or retail chain with marginal to no handling or storage time. Cross docking takes place in a distribution docking terminal; usually consisting of trucks and dock doors on two (inbound and outbound) sides with minimal storage space. The name ‘cross docking’ explains the process of receiving products through an inbound dock and then transferring them across the dock to the outbound transportation dock.
In simple terms, inbound products arrive through transportation such as trucks/trailers, and are allocated to a receiving dock on one side of the ‘cross dock’ terminal. Once the inbound transportation has been docked its products can be moved either directly or indirectly to the outbound destinations; they can be unloaded, sorted and screened to identify their end destinations. After being sorted, products are moved to the other end of the ‘cross dock’ terminal via a forklift, conveyor belt, pallet truck or another means of transportation to their destined outbound dock. When the outbound transportation has been loaded, the products can then make their way to customers.
When is 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. Cross docking can advance the supply chain for a variety of specific products. For one, unpreserved or temperature controlled items such as food which need to be transported as quickly as possible can be benefitted by this process. Additionally, already packaged and sorted products ready for transportation to a particular customer can become a faster and more efficient process through cross docking.
Some of the main reasons cross docking is implemented is to:
? Provide a central site for products to be sorted and similar products combined to be delivered to multiple destinations in the most productive and fastest method. This process can be described as “hub and spoke”
? Combine numerous smaller product loads into one method of transport to save on transportation costs. This process can be described as ‘consolidation arrangements’.
? Break down large product loads into smaller loads for transportation to create an easier delivery process to the customer. This process can be described as ‘deconsolidation arrangements’.
Types of cross docking freight solutions
1. Continuous Cross-Docking
The simplest and fastest process. It provides a central site for products, so they are immediately transferred from an inbound truck to an outbound truck. If trucks arrive at the terminal at different times, they will incur a waiting time.
2. Consolidation Arrangements
The process of merging several smaller product loads into one truck or one big load in the dock facility. This way, incoming freight is combined with goods stored at the terminal to form full truckload shipments.
3. Deconsolidation Arrangements
This process is the opposite of consolidation arrangements. Large product loads are broken into smaller loads for easy transportation. Usually, these small loads go directly to a customer.
Products Suitable for Cross-Docking
Perishable products that require instant shipment.
Products that are pre-tagged (maybe with RFID) and ready for sale.
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Promotional items.
Staple retail products with a constant-demand.
Pre-picked, pre-packaged customer orders from another warehouse.
Cross Docking in Supply Chain Management
Cross-docking simplifies delivery process. It’s a supply-chain related process, requiring collaboration among members of the chain. Traditional SCM model relied on the use of inventory buffers at strategic points within the supply chain to alleviate the uncertainty between supply and demand.
?Cross-docking makes your inbound and outbound delivery service that much more efficient, lowering transportation costs and improving customer satisfaction due to quicker delivery times. The name comes from the process of receiving and quickly transferring products across a dock in the middle between the two trucks for quick, seamless transfer.
Difference between Cross-Docking and Traditional Warehousing
A warehouse is a facility that, along with storage racks, handling equipment and personnel and management resources, allows us to control the differences between the incoming flow of goods (received from suppliers, production centers, etc.) and the outgoing flow of goods (goods being sent to production, sales, etc.). Usually, these flows are not coordinated, and this is one of the reasons why it is important to have storage facilities.
The main tasks performed in a warehouse are:
Receipt of goods
Verification of those goods
In-house transport (between different parts of the warehouse)
Storage and safe-keeping of items
Preparation of orders and the consolidation of loads
Dispatch of goods
General management and processing of information related to the stock, workflows, demand, etc.
Cross docking is a logistics procedure where products from a supplier or manufacturing plant are distributed directly to a customer or retail chain with marginal to no handling or storage time. Cross docking takes place in a distribution docking terminal; usually consisting of trucks and dock doors on two (inbound and outbound) sides with minimal storage space. The name ‘cross docking’ explains the process of receiving products through an inbound dock and then transferring them across the dock to the outbound transportation dock.
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Abdul Gafoor Payyoli