The cross dock procedure can be very beneficial to the efficiency of a supply chain. But why? What is cross docking and why does it help? Show
Cross docking most often occurs at a sorting or material handling facility which may or may not be a part of a storage warehouse operation. The procedure is an effective tool to help supply chain managers balance the least amount of cushion stock on hand while lowering the risk of a stock out. But what exactly is cross docking? Table of ContentsWhat is Cross-Docking?Cross docking is a logistics procedure that immediately transfers materials from one dock to another. Instead of storing as inventory, cross docked materials may only go through receiving and sorting before loading onto a truck for shipping. In other words, cross-docking is the process of unloading materials from an inbound transportation, and loading it onto outbound transportation with no storage. Sometimes the cross docking may involve certain amounts of processing. For example, LCL (less than container load) require a cross dock procedure to sort importer’s materials to their destinations. Typically, this process is called transloading. In these circumstances, the facility must ensure that materials transfer to the correct outbound truck. If not, the materials could end up at the wrong destination. What is a cross docking warehouse?A cross docking warehouse is a type of contract warehouse that is dedicated solely to these services. Whereas some warehouses may offer long term storage or fulfillment solutions, cross docking facilities do not. The benefit of a dedicated cross docking warehouse is the scalability and efficiency of operations. Most often, cross docking is an additional service offered by fulfillment or distribution centers. For the most efficient and cost-effective operations, these facilities must adopt the shortest possible distance between inbound and outbound docks. Therefore, the shape of the system matters greatly. A large square shaped warehouse may not function well as a scalable dedicated cross-docking service provider due to the large distance from one dock to the other. It is recommended that docks are no more than 100-200 feet apart for the best efficiency in these cross docking procedures. For smaller operations, a rectangle or I shaped layout works great. However as operations scale to more and more simultaneous doors, an X shaped facility is best. 3 Types of Cross Dock ProceduresIn true (or “pure”) cross docking, there is no storage. That means that material does not “sit” in a warehouse for any period of time before the next phase of the supply chain. However that is not always the case as every supply chain has different needs and requirements. Below are the 3 main types of cross dock procedures.
Benefits of Cross Docking
Risks of Cross Docking Supply ChainsWhile the benefits of cross docking processes seem great, there are also some risks to consider. Primarily, the process is suited for high-volume products which means if your demand shifts, you could have a costly inventory situation. If your cross-docking process involves consolidation, you may introduce some risk as suppliers do not always meet their forecasted delivery dates. In these circumstances, your logistics provider may not be able to process your inventory due to missing elements. If it is a dedicated cross-dock warehouse, then you may get into trouble if your lead times are too far off, as these providers do not maintain large volumes of storage space. Generally speaking, this type of sorting procedure is best suited for mature supply chains that have high-volume, high-value, or even seasonal demand curves. If you purchase your material in bulk quantities for longer consumption periods, you may want to consider traditional warehousing. Looking for a fulfillment partner? Let AMS Pick, Pack & Ship There was a time when businesses revolved centrally around the customer and their needs. Decisions were made based on what is best for the customer first. People did what they said they would, and jobs were completed on time. AMS carries on the tradition of customer service today. Which of the following is a traditional warehouse activity?Typical warehouse activities include putting items away, moving items inside or between warehouses, and picking items for assembly, production, or shipment.
What kind of warehouse facility performs very differently from a conventional?What kind of warehouse facility performs very differently from a conventional warehouse by receiving inventory and shipping it out in the same day? Warehouses let you separate production from consumption, enabling you to take advantage of Production Economies of scale.
Which of the following is a major reason for damage within the warehouse?Faulty pallets are among the leading causes of product damage in a warehouse.
Which of the following has been referred to as transportation at zero miles per hour?Warehousing and transportation are substitutes for each other, with warehousing having been referred to as “transportation at zero miles per hour.”
|