Cross-docking is a logistical practice of Just-In-Time Scheduling where materials are delivered directly from a manufacturer or a mode of transportation to a customer or another mode of transportation. Cross-docking often aims to minimise overheads related to storing goods between shipments or while awaiting a customer's order.[1] This may be done to change the type of conveyance, to sort material intended for different destinations, or to combine material from different origins into transport vehicles (or containers) with the same or similar destinations.
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.[2]
In the LTL trucking industry, cross-docking is done by moving cargo from one transport vehicle directly onto another, with minimal or no warehousing. In retail practice, cross-docking operations may utilize staging areas where inbound materials are sorted, consolidated, and stored until the outbound shipment is complete and ready to ship.
Cross-dock operations were pioneered in the US trucking industry in the 1930s[citation needed], and have been in continuous use in less-than-truckload operations ever since. The US military began using cross-docking operations in the 1950s. Wal-Mart began using cross-docking in the retail sector in the late 1980s.
As of 2014 almost half of all US warehouses are cross-docking. [3]
Advantages of retail cross-docking
Streamlines the supply chain, from point of origin to point of sale [4]
Reduces labor costs through less inventory handling [5]
Reduces inventory holding costs by reducing storage times and potentially eliminating the need to retain safety stock [2]
Products reach the distributor, and consequently the customer, faster [4]
"Hub and spoke" arrangements, where materials are brought in to one central location and then sorted for delivery to a variety of destinations
Consolidation arrangements, where a variety of smaller shipments are combined into one larger shipment for economy of transport
Deconsolidation arrangements, where large shipments (e.g., railcar lots) are broken down into smaller lots for ease of delivery
Retail cross-dock example: using cross-docking, Wal-Mart was able to effectively leverage its logistical volume into a core strategic competency.
Wal-Mart operates an extensive satellite network of distribution centers serviced by company-owned trucks
Wal-Mart's satellite network sends point-of-sale (POS) data directly to 4,000 vendors.
Each register is directly connected to a satellite system sending sales information to Wal-Mart’s headquarters and distribution centers.
Factors influencing the use of retail cross-docks
Cross-docking depends on continuous communication between suppliers, distribution centers, and all points of sale
Customer and supplier geography, particularly when a single corporate customer has many multiple branches or using points
Freight costs for the commodities being transported
Cost of inventory in transit
Complexity of loads
Handling methods
Logistics software integration between supplier(s), vendor, and shipper
Tracking of inventory in transit
Products Suitable For Cross-docking
Perishable goods- These are products that are time sensitive like agricultural products and require instant shipping. Other products that use Last In First Out inventory management method may also apply cross docking.[7]
Staple products- Staple products like staple food, clothes always have a high demand and go through a less storage time. Businesses with these types of products may include them in their cross docking model to reduce storage costs.
Promotional items- Cross-docking comes in handy for eCommerce platforms that have clearance sale programs.
Cross-dock facility design
Cross-dock facilities are generally designed in an "I" configuration, which is an elongated rectangle. The goal in using this shape is to maximize the number of inbound and outbound doors that can be added to the facility while keeping the floor area inside the facility to a minimum. Bartholdi and Gue (2004) demonstrated that this shape is ideal for facilities with 150 doors or less. For facilities with 150–200 doors, a "T" shape is more cost effective. Finally, for facilities with 200 or more doors, the cost-minimizing shape is an "X".[8]
References
Wikimedia Commons has media related to Cross-docking.
^Álvarez-Pérez, González-Velarde, Fowler. Crossdocking— Just in Time scheduling: an alternative solution approach. Journal of the Operational Research Society, 2009.
^ abcdMoody, K. (2019). Labour and the contradictory logic of logistics. Work Organisation, Labour & Globalisation, 13(1), 79-95. doi:10.13169/workorgalaboglob.13.1.0079
^ abPuckett, Sean M.; Hensher, David A.; Battellino, Helen (2006). "The Adjustment of Supply Chains to New States: A Qualitative Assessment of Decision Relationships with Reference to Congestion Charging". International Journal of Transport Economics / Rivista Internazionale di Economia dei Trasporti. 33 (3): 313–339. JSTOR 42747807.
^ abcdefRay, Kulwiec (2004). "Crossdocking as a Supply Chain Strategy" (PDF). (PDF) from the original on 2016-02-07.
^"Effective Warehousing for Inbound and Outbound Operations - SIPMM Publications". SIPMM Publications. 2020-10-04. Retrieved 2023-01-13.
^Bartholdi, John J.; Gue, Kevin R. (May 2004). "The Best Shape for a Crossdock". Transportation Science. 38 (2): 235–244. doi:10.1287/trsc.1030.0077.
Making the Move to Crossdocking, Maida Napolitano and the staff of Gross & Associates, 2000 copyright, www.werc.org
August 27, 2023
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This article needs additional citations for verification Please help improve this article by adding citations to reliable sources Unsourced material may be challenged and removed Find sources Cross docking news newspapers books scholar JSTOR October 2008 Learn how and when to remove this template message Cross docking is a logistical practice of Just In Time Scheduling where materials are delivered directly from a manufacturer or a mode of transportation to a customer or another mode of transportation Cross docking often aims to minimise overheads related to storing goods between shipments or while awaiting a customer s order 1 This may be done to change the type of conveyance to sort material intended for different destinations or to combine material from different origins into transport vehicles or containers with the same or similar destinations 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 2 In the LTL trucking industry cross docking is done by moving cargo from one transport vehicle directly onto another with minimal or no warehousing In retail practice cross docking operations may utilize staging areas where inbound materials are sorted consolidated and stored until the outbound shipment is complete and ready to ship Contents 1 History 2 Advantages of retail cross docking 3 Risks of cross docking 4 Types of Cross docking 5 Typical applications 6 Factors influencing the use of retail cross docks 7 Products Suitable For Cross docking 8 Cross dock facility design 9 ReferencesHistory EditCross dock operations were pioneered in the US trucking industry in the 1930s citation needed and have been in continuous use in less than truckload operations ever since The US military began using cross docking operations in the 1950s Wal Mart began using cross docking in the retail sector in the late 1980s As of 2014 almost half of all US warehouses are cross docking 3 Advantages of retail cross docking EditStreamlines the supply chain from point of origin to point of sale 4 Reduces labor costs through less inventory handling 5 Reduces inventory holding costs by reducing storage times and potentially eliminating the need to retain safety stock 2 Products reach the distributor and consequently the customer faster 4 Reduces or eliminates warehousing costs May increase available retail sales space Less risk of inventory handling No need for large warehouse areas Easier to screen product qualityRisks of cross docking EditFewer suppliers 3 Supply chain vulnerability from disruptions 3 Reduced storage availability 3 An adequate transport fleet is needed to operate A computerized logistics system is needed Additional freight handling can lead to product damage Labor costs are also incurred in the moving and shipping of stock Accidentally splitting up shipments larger than a single pallet leading to multiple deliveries or lost itemsTypes of Cross docking EditFull Pallet Load Operation 6 Case load Order Makeup 6 Hybrid Cross docking 6 Opportunistic Cross docking 6 Truck Rail Consolidation 6 Short term Storage 6 Typical applications Edit Hub and spoke arrangements where materials are brought in to one central location and then sorted for delivery to a variety of destinations Consolidation arrangements where a variety of smaller shipments are combined into one larger shipment for economy of transport Deconsolidation arrangements where large shipments e g railcar lots are broken down into smaller lots for ease of deliveryRetail cross dock example using cross docking Wal Mart was able to effectively leverage its logistical volume into a core strategic competency Wal Mart operates an extensive satellite network of distribution centers serviced by company owned trucks Wal Mart s satellite network sends point of sale POS data directly to 4 000 vendors Each register is directly connected to a satellite system sending sales information to Wal Mart s headquarters and distribution centers Factors influencing the use of retail cross docks EditCross docking depends on continuous communication between suppliers distribution centers and all points of sale Customer and supplier geography particularly when a single corporate customer has many multiple branches or using points Freight costs for the commodities being transported Cost of inventory in transit Complexity of loads Handling methods Logistics software integration between supplier s vendor and shipper Tracking of inventory in transitProducts Suitable For Cross docking EditPerishable goods These are products that are time sensitive like agricultural products and require instant shipping Other products that use Last In First Out inventory management method may also apply cross docking 7 Staple products Staple products like staple food clothes always have a high demand and go through a less storage time Businesses with these types of products may include them in their cross docking model to reduce storage costs Promotional items Cross docking comes in handy for eCommerce platforms that have clearance sale programs Cross dock facility design EditCross dock facilities are generally designed in an I configuration which is an elongated rectangle The goal in using this shape is to maximize the number of inbound and outbound doors that can be added to the facility while keeping the floor area inside the facility to a minimum Bartholdi and Gue 2004 demonstrated that this shape is ideal for facilities with 150 doors or less For facilities with 150 200 doors a T shape is more cost effective Finally for facilities with 200 or more doors the cost minimizing shape is an X 8 References Edit Wikimedia Commons has media related to Cross docking Alvarez Perez Gonzalez Velarde Fowler Crossdocking Just in Time scheduling an alternative solution approach Journal of the Operational Research Society 2009 a b Sehgal Vivek 2009 Enterprise supply chain management integrating best in class processes Hoboken N J Wiley ISBN 978 1 119 19834 5 OCLC 428439918 a b c d Moody K 2019 Labour and the contradictory logic of logistics Work Organisation Labour amp Globalisation 13 1 79 95 doi 10 13169 workorgalaboglob 13 1 0079 a b Puckett Sean M Hensher David A Battellino Helen 2006 The Adjustment of Supply Chains to New States A Qualitative Assessment of Decision Relationships with Reference to Congestion Charging International Journal of Transport Economics Rivista Internazionale di Economia dei Trasporti 33 3 313 339 JSTOR 42747807 Sehgal Vivek 2009 Enterprise supply chain management integrating best in class processes Hoboken N J Wiley ISBN 978 1 119 19834 5 OCLC 428439918 a b c d e f Ray Kulwiec 2004 Crossdocking as a Supply Chain Strategy PDF Archived PDF from the original on 2016 02 07 Effective Warehousing for Inbound and Outbound Operations SIPMM Publications SIPMM Publications 2020 10 04 Retrieved 2023 01 13 Bartholdi John J Gue Kevin R May 2004 The Best Shape for a Crossdock Transportation Science 38 2 235 244 doi 10 1287 trsc 1030 0077 Making the Move to Crossdocking Maida Napolitano and the staff of Gross amp Associates 2000 copyright www werc org Retrieved from https en wikipedia org w index php title Cross docking amp oldid 1171577854, wikipedia, wiki, book, books, library,
