cross docking

Strategic Logistics Management

Cross Docking

Strategic Logistics Management
Crossdocking
• In Cross Docking, Inbound materials are directed to outbound doors and are directly loaded into outbound trucks OR
“Staged” for a very brief time period before loading
• Inbound product flow is synchronized with outbound product flow to essentially eliminate storage of inventory Strategic Logistics Management
Crossdocking




Can accomplish significant reductions in total costs and in lead times in a supply chain
“Crossdock facilities” act as transfer points

Strategic Logistics Management

A

B

Traditional Distribution

A

A

Warehous e B

B

Supplier s A

•
•
•
•
•
•

Receiving
Putaway
Storage
Replenishment
Picking
Shipping

B

Stores

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Strategic Logistics Management

A

B

Crossdocking

A

A

Crossdock
Facility

B

B

Supplier s A

• Receiving
• Staging (<24hr)
• Shipping

B

Stores

4

Strategic Logistics Management
Applicability of Crossdocking has Increased







Fierce competition in all industries, especially retail
Companies cooperating with supply chain partners to reduce the system-wide costs
Internet allows companies to communicate among each other in real time
Costs significantly lower than the past

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Strategic Logistics Management
Types of Crossdocking
.
.

Pre- Distribution Cross Docking
Post- Distribution Cross Docking

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Strategic Logistics Management
In pre-distribution cross-docking, the customer is assigned and information is sent to vendor before the shipment leaves, so it arrives to the cross-dock bagged and tagged for transfer.
In post-distribution cross-docking, the cross-dock itself allocates material to its stores.
For example: Cross-dock at a Wal-Mart might receive 20 pallets of
Tide detergent without labels for individual stores. Workers at the cross-dock allocate 3 pallets to Store 23, 5 pallets to Store 14, and so on. Strategic Logistics Management
Crossdocking – Type 01
Crossdock
Supplier
Preallocated
1
2
3