But, many small businesses do not understand the difference between cross-docking services and warehousing and shipping. The most appropriate method for managing the cross-dock is to apply the principles of Theory of Constraints (TOC) and Lean Six Sigma practices, both of which seek to continuously improve the use of the resources, driving towards full utilization of the capacity of various stages to make the overall process the most efficient. Cross docking is a supply chain 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. 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. Corporate ownership and control, vol 8, issue 4, pp 193-200. & Pienaar, W. J., April 2007. Cross-Docking vs. Warehousing The goals of any shipping relationship are simple: to get a product from your business to a customer with minimum damage, cost, and time. Cross-docking is the process of moving material from the receiving dock to the shipping dock, bypassing storage. Cross-docking is a logistics procedure where products are moved out of a manufacturing plant and sent directly to the customer with minimal material handling taking place in between. Making the Move to Crossdocking, Maida Napolitano and the staff of Gross & Associates, 2000 copyright, www.werc.orgMaking the Move to Crossdocking, Maida Napolitano and the staff of Gross & Associates, 2000 copyright, www.werc.org, Learn how and when to remove this template message, https://en.wikipedia.org/w/index.php?title=Cross-docking&oldid=975987262, Articles needing additional references from October 2008, All articles needing additional references, Creative Commons Attribution-ShareAlike License, Streamlines the supply chain, from point of origin to point of sale, Reduces labor costs through less inventory handling, Reduces inventory holding costs by reducing storage times and potentially eliminating the need to retain safety stock, Products reach the distributor, and consequently the customer, faster, May increase available retail sales space, Potential partners may not have the necessary storage capacities, 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 items, This page was last edited on 31 August 2020, at 15:02. Understanding how cross-dock based supply chains work. Finally, for facilities with 200 or more doors, the cost-minimizing shape is an "X”. Cross-dock facilities are generally designed in an "I" configuration, which is an elongated rectangle. Excellent work on designing and shape of the facility was done to define the optimum shape given a specific number of doors [5]. Corporate ownership and control, Volume 8, issue 1. Preparing materials for shipping, packaging materials, delivering materials to the shipping agency, waiting for the delivery to happen, and following up with customers are all steps that require time and attention. 2010. The cross-dock is primarily a sortation process, linking the inbound to the outbound movements. Whereas manual sortation does allow for relatively easy scaling, but requires more people, and more space for them to work. In a system with incoming trucking docks and outgoing trucking docks, a cross-docking warehouse may move product directly from receivables to outgoing shipping without long-term storage. & Pienaar, W. J., 2011. Concept and Understanding Cross-docks are facilities which function without storage in supply chains [1]. Vogt, John J. 38 (2): 235–244. While traditional warehousing systems require that a distributor has stocks of product on hand to ship to your customers, a cross-docking system focuses on using the best technology and business systems to create a JIT (just-in-time) shipping process. While correctly designed automation is more efficient than manual sortation, it is designed for a maximum level of throughput, which is difficult to increase. and the operation takes place in a restricted area. 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. From warehousing to packaging, from cross-docking to shuttle services, a great logistics partnership provides all these benefits and more. While cross-docking provides many benefits, each benefit is increased when part of a logistics partnership which includes full-service shipping and handling. 4. Many businesses work out shipping relationships with a trucking or logistics partner, but also use a parcel delivery system for their on-demand business. As you will see below, there are many benefits that a 3PL team using cross-docking can offer your business. Every time you are storing inventory long-term, you are renting that square footage from your logistics partner. 2. | “Operational criteria for a successful cross-dock based supply chain”. Vogt, John J. Risk is always increased whenever humans are involved, and cross-docking cuts out at least two steps involving opportunity for operator errors: moving product into storage and out of storage. Terms Bartholdi, John J.; Gue, Kevin R. (May 2004). Transportation Science. Through cross-docking your business reduces the need for multiple business relationships and the high costs incurred by smaller shipping systems: do your warehousing and expedited shipping with the same team. Inventory storage takes up square footage in warehouses. The inbound doors will be designed to match the throughput of the facility to service these downstream locations. There is no buffer of stock to decouple the inbound and outbound processes. By eliminating or minimizing warehouse storage costs, space requirements and inventory handling, cross-docking can streamline supply chains and help them move goods to market faster and more efficiently. Management of and Improvements in a cross-dock [2,1]. Vogt, John J. For example, one type of sortation is the pop-up sorter, and this cannot be set both for very light and for very heavy products- the weight and size have to be within specific ranges. 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