Scribd
Upload
147 views15 pages

Cross-Docking Benefits and Uses

Cross-docking operations were first used in the 1930s US trucking industry and involve moving cargo directly from one transport vehicle to another with little or no warehousing. While some cross-docking uses staging areas to sort and consolidate inbound materials until outbound shipments are ready, true cross-docking is done within hours. Wal-Mart was highly successful in implementing cross-docking by using point-of-sale data to instantly update supply chains. Cross-docking provides benefits like reduced costs and faster delivery but requires careful planning and management of suppliers.

Uploaded by

Abdur Rafay
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
147 views15 pages

Cross-Docking Benefits and Uses

Cross-docking operations were first used in the 1930s US trucking industry and involve moving cargo directly from one transport vehicle to another with little or no warehousing. While some cross-docking uses staging areas to sort and consolidate inbound materials until outbound shipments are ready, true cross-docking is done within hours. Wal-Mart was highly successful in implementing cross-docking by using point-of-sale data to instantly update supply chains. Cross-docking provides benefits like reduced costs and faster delivery but requires careful planning and management of suppliers.

Uploaded by

Abdur Rafay
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

CROSS DOCKING

BY: SYED HUZAIFA KHALID


CROSS-DOCKING

 Cross-dock operations were first pioneered in the US TRUCKING


INDUSTRY in the 1930s and have been in continuous use in less-than-
truckload LTL 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.
 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.
2
CROSS DOCKING
CROSS-DOCKING

 In practice many "cross-docking" operations


require large staging areas where inbound
materials are sorted, consolidated, and stored
until the outbound shipment is complete and
ready to ship.

4
CROSS-DOCKING
 If the staging takes hours or a day, the operation is usually
referred to as a "cross-dock" distribution center.

 If it takes several days or even weeks, the operation is usually


considered warehousing.

5
CROSS DOCKING
WAL-MART'S CROSS-DOCKING DISTRIBUTION SYSTEM

 Cross docking has been most successfully


implemented in Wal-Mart's distribution system.
 Individual Wal-Mart stores transmit point-of-sale
(POS) data from the cash register back to
corporate headquarters several times a day.

8
WAL-MART'S CROSS-DOCKING DISTRIBUTION SYSTEM

 This provides instant feedback on customer demand,


which is transmitted up the supply chain.
 Demand information is used to order shipments from
 suppliers to the Wal-Mart distribution center and from
 the Wal-Mart distribution center to the store.

9
ADVANTAGES OF CROSS DOCKING

 Many companies have benefitted from using cross docking. Some


of the benefits include:
 Reduction in labor costs, as the products no longer requires picking
and put away in the warehouse.
 Reduction in the time from production to the customer, which
helps improve customer satisfaction.
 Reduction in the need for warehouse space, as there is no
requirement to storage the products.
PRODUCTS SUITABLE FOR CROSS DOCKING

 Perishable items that require immediate shipment


 High-quality items that do not require quality inspections during goods
receipt
 Products that are pre-tagged (bar coded, RFID), pre-ticketed, and ready
for sale at the customer
 Staple retail products with a constant demand or low demand variance
 Pre-picked, pre-packaged customer orders from another production
plant or warehouse
DISADVANTAGES OF CROSS DOCKING
 Must management planning and time requirement.
 A computerized logistics system is needed

 Additional freight handling can lead to product damage


 Supplier do not deliver on right time.
THANKYOU

You might also like