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Cross Docking By: Syed Huzaifa Khalid

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.

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Abdur Rafay
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109 views15 pages

Cross Docking By: Syed Huzaifa Khalid

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
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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.
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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.

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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.

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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.

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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.

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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

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