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Cross-Docking

Distribution Channels
by

Ashley Stedding

on 1 April 2014

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Transcript of Cross-Docking

Cross-Docking Applied
What is Cross-Docking?
CONCLUSION
CROSS-DOCKING
Steps in Cross-Docking Process
– Trucks are registered and assigned to parking space
– Truck is directed to enter
- Procedure at the dock doors:
trucks unload
shipments registered
checked for damage
sorted
- Shipments moved across dock to their respective destination, receive any value-adding services
- Shipments loaded and transferred
Steps include:
Weighting it Out
Incoming shipments collected from the inbound trucks
Stages of Cross-Docking
Sorted by destination
Transported through the warehouse to be immediately loaded onto the outbound trucks
To ensure all transportation modes are at full capacity
Primary Purpose of Cross-Docking
Companies Specializing in Cross-Docking

Reduce storage to the greatest extent possible
Economies of scale for transportation costs
Outokumpu's Long Products
SUMMARY
Loading goods arriving at a warehouse from a supplier directly onto outbound trucks, thereby avoiding warehouse storage
What is Cross-Docking?
Loading goods arriving at a warehouse from a supplier directly
onto outbound trucks, thereby avoiding warehouse storage
Cross docking
is a
logistics 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.
Advantages
-Products get to the distributor and consequently to the customer faster
- Eliminating the need for traditional warehousing activities
- Reduce inventory holding costs
-Reduced labor cost hrough less inventory handling
-Product Quality screening
-Save on transportation costs
- More accurate forecasting of inventory needs
Disadvantages
-High volume of product is necessary to be cost effective

-Potential partners lack necessary storage capacities
-Requires lots of time spent on organizing
-Need a good tagging system to keep track of products
-Involves quite a bit of information transfer, system integration, and coordination
-Need for a computerized logistics system
-Little room for error regarding timing from supplier
Ashley Stedding, Caitlin Cucitrone, Brody Prudnick, Brandon Hethcoat, Kenny Wright
Cross-Docking and Distribution Centers
Materials are brought into one central location and then sorted for delivery to a variety of destinations

"Hub and Spoke" Arrangements
Consolidation Arrangements
Combine numerous smaller product loads into one method of transport to save on transportation costs

Works Cited
Speed and productivity of a supply chain has become an important factor of growth for organizations.

Cross-docking is just one strategy that can be implemented to help achieve a competitive advantage.

Implemented appropriately and in the right conditions, cross-docking can provide significant improvements in efficiency and handling times.
Distribution docking terminal

Typically consisting of trucks and dock doors on two (inbound and outbound) sides with minimal storage space

Where does Cross-Docking take place?
When to use Cross-Docking...
The process of cross docking will not suit every warehouses needs

--> It is important to make an informed decision as to whether cross-docking will increase the productivity, costs and customer satisfaction for your specific business

Cross docking can advance the supply chain for a variety of specific products
Unpreserved or temperature controlled items such as food which need to be transported as quickly as possible can be benefitted by this process.
Already packaged and sorted products ready for transportation to a particular customer can become a faster and more efficient process through cross docking.
Break down large product loads into smaller loads for transportation to create an easier delivery process to the customer
Deconsolidation Arrangement
Deliver about 85% of its merchandises using a cross-docking system
Rodriguez, Jean-Paul, Dr. "Cross-Docking Distribution Center." People.hofstra.edu. N.p., n.d. Web. 28 Mar. 2014.
Each register is directly connected to a satellite system sending sales information to Wal Mart’s headquarters and distribution centers
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
Able to effectively leverage their logistical volume into a core strategic competency
John J. Bartholdi and Kevin R. Gue. The Best Shape for a Crossdock Transportation Scipp. 235-244. Making the Move to Crossdocking, Maida Napolitano and the staff of Gross & Associates, 2000 copyright, www.werc.org
Companies like Toyota have designed and built their own cross-docking facilities. Normally these facilities are strategically located to reduce distance and maximize support.
Nieuwoudt, Tielman. "Cross-docking: The Need for Speed." The Supply Chan Lab RSS. N.p., 29 Mar. 2010. Web. 31 Mar. 2014.
The project established an optimal network for 650 dealers using 20 cross-docking centers out of 100 potential locations.
Pilot Project Toyota Germany
http://www.ortec.com/-/media/files/infortec_articles/english/infortec_global_2008_2_toyota.pdf
Toyota ORTEC Shortrec is used for routing and scheduling purposes, it also automates and controls the loading and unloading processes of 250 trucks.
"Cross Dock Services." GSA International. N.p., 2010. Web. 27 Mar. 2014. <http://www.gsainternational.com/cross-dock-services->.
GSA International LTD
Supply Chain Engineering is announcing a strategic alliance with GSA International, Ltd. to provide a variety of cross dock and warehouse services for our clients.

Michigan based transportation and logistics company experiences substantial growth and time savings with Prophecy.
http://www.weberlogistics.com/warehousing-distribution/cross-dock-facility-warehouse-services/
Weber's cross-dock services address four major areas:
Weber's cross-dock operations provide large staging areas where inbound materials are sorted and outbound shipments are staged and ready to ship within hours.
supply chain flexibility, speed, reliability and cost management.
West Coast and Los Angelos Cross Dock Service
Offer close proximity to all major West Coast transportation and hub points
Advantages of Weber Cross Dock Services:
Location Flexibility
Cold Chain Management
Transload Services
17 Cross Dock Warehouses
Temperature Controlled
Receive products via one mode and immediately transfer to another
Cross-docking is one of the reasons for Wal-Marts success
Allows for a more responsive system to changing customer needs
Efficiency is improved as costs and shipping time are reduced
Cross-Docking favors the timely distribution of freight a better synchronization with demand and a more efficient use of transpotation assets
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