CONTENTS
1.0 Cross docking Definitions and Methodologies
1.1 Manufacturing Cross docking
1.2 Distribution Cross docking
1.3 Terminal Cross docking
2.0 Cross docking Strategies
3.0 Cross docking Requirements
3.1 Information Systems Requirements
3.2 Space and Equipment Requirements
3.3 operational Requirements
4.0 How to Implement a Cross docking Program
4.1 Justifying Cross docking
4.2 Designing Your Cross docking System
4.3 Implementing a Cross docking Program
5.0 Conclusion
Tompkins Associates 1.0 CROSS DOCKING ping). The ideal situation occurs when the DEFINITIONS AND finished goods flow directly from manufac METHODOLOGIES turing into the back of a truck at the dock This should be called current manufacturing Crossdocking as an operational proce crossdocking. The next most desirable situa dure has been around for many years. In fact, tion would be when finished goods flow di most warehouses have had an informal back manufacturing to a staging area for shipment later. This should be called fu crossdocking operation ture manufacturing crossdocking. Of course occurs when the warehouse attempts to fulfill a challenge exists here in how far into the fu a back order with received product before th ture finished goods should be staged instead product is ever stored in the warehouse. The of being placed in storage. The advantage of warehouse has flagged the pending inbound both current and future manufacturing receipt for a back order and knows that when crossdocking is the minimization of the fin the product is received. the warehouse should ished goods handling. A disadvantage of fu go get the back order and allocate product to ture manufacturing cross docking is the the back order. This process has been used amount of staging space required to hold the over the years to quickly get back ordered future finished goods shipments. In fact, the goods to the customer. This procedure ha definition of future (two hours, four hours, one not really been concerned with the other ben day, two days? should be established by trad efits associated with crossdocking ing off the savings in handling versus the costs There are three different methods of of space. Manufacturing crossdocking typi crossdocking. They are cally applies only when full unit loads of the same finished goods are shipped. But, cur 1. Manufacturing Crossdocking rent and future manufacturing crossdocking 2. Distribution Crossdocking require a real-time warehouse management 3. Terminal Crossdocking ystem to manage the flow and staging offin ished goods The following subsections describe each A challenge that needs to be addressed with current manufacturing crossdocking is of the crossdocking methods. the limitation of not having the opportunity for placing finished goods on hold prior to 1.1 CROSSDOCKING MANUFACTURING their being shipped. It would not be unusual fora finished goods warehouse to be designed so that both current and future manufacturing Instead of placing finished goods from manufacturing into a finished goods ware crossdocking could be utilized. Another cir house, they are dispatched to the dock for cumstance that should be included while dis shipment (sometimes this is called direct ship cussing manufacturing crossdocking would be Page 1 Cross docking in the '90s
Tompkins Associates the reverse of direct shipping manufacturing When individual cases are being crossdocking, direct receiving manufacturing crossdocked, these crossdocking applications crossdocking. This (JIT) is where materials are most often conveyor sortation system- are received Just-In-Time and godirectly from based. It also would not be unusual for the cument and future categories to be divided into receiving to manufacturing without going to storage. Once again, this receiving can be current/active, current/same day, and future done for either cument production or future Here the current/active is dispatched into the production. truck, the cument/same day is in staging or on the conveyor for release later in the day, and Manufacturing future will be staged to be shipped when the future becomes the cument day. Finished Good Staging Distribution Trucka Current Manufacturing Crossdock Receiving Trucks Manufacturing Current/Active Distribution Center Crossdock Finished Good Warehouee Distribution Staging Trucks Receiving Current Manufacturing Crossdock Trucks Figure 1.1: Manufacturing Crossdocking Current/Same Distribution Center Crossdock Distribution 1.2 CROSSDOCKING DISTRIBUTION Center Sego Just as there is cument and future manu facturing crossdocking, there is also current and future distribution center crossdoeking. Sipping Receiving The differences here are that although full unit Future Disribution Center Crossdock loads are received, both full unit loads and individual cases can be crossdocked Figure 1.2: Distribution Center Crossdocking Cross docking in the '90s Page 2
Tompkins Associates 1.3 TERMINAL CROSS DOCKING partners. Crossdocking relationships can e ist between any partner in the supply chain. Terminal crossdocking is more of atruck Raw materials can be supplied JIT to the ing sortation and consolidation of orders than manufacturer, the manufacturer can crossdock to either the distributor or the retailer and the a warehouse/distribution center concept. An example would be a customer that has ordered distributor can crossdock to the retailer. All products that are distributed from twodiffer the cost of receiving at the receiving facility ent distribution centers. The customer wants relationships exist for two reasons: to reduce a single orderreceipt of the entire order. Typi and to reduce