Executive Summary
Cross-docking — the process of moving material
from the receiving dock to the shipping dock
and bypassing intermediate storage — is a simple
warehousing practice. Yet it is core to a highly
functioning supply chain — a critical component
for retailers pursuing a distribution strategy that
pivots on lean concepts and fuels just in time (JIT)
inventory control. It requires a tight partnership
among supply chain members. The advantages
of cross-docking have been well documented,
and it’s safe to say that it has been embraced by
retailers of all kinds. By moving goods through
distribution centers (DCs) with minimal storage,
companies that effectively utilize cross-docking
have been able to increase inventory turns,
improve throughput and lower operational costs
The 2011 Cross-Docking Trends Report by Saddle
Creek Logistics Services indicates that the use of
cross-docking has grown significantly over the
years — from 16.5% of the 219 retailers surveyed
in 2008 to 68.5% in 2011.1
Still, challenges persist
for retailers attempting to implement a perfect
cross-docking process amid tough economic
times. These issues — labor costs, accuracy and
throughput — pertain to:
• IT system support.
• Supplier reliability.
• Achieving ROI by minimizing touches.
This paper uncovers inefficiencies in cross-docking,
and explores opportunities for increasing
effectiveness through actionable process
improvements and technology-based solutions.
We will also discuss how to properly position
cross-docking strategies in the supply chain, and
detail the areas where retailers need to sharpen
their focus, including:
• Advanced shipment notifications (ASNs).
• Logistical unit barcodes.
• The warehouse management system (WMS),
which must be integrated into the operations
of the material handling system (MHS).