EXHIBIT IV
TYPES OF CROSS DOCKING
Opportunistic Cross docking In this method of cross docking, exact information about where the required good was to be shipped and from where it has to be procured and the exact quantity to be shipped, was needed. This method of cross docking enabled the company to directly ship the goods needed by the retail customers, without storing them in the warehouse bins or shelves. Opportunistic cross docking could also be used when the warehouse management software, installed by the reproduct was ready for moving and could be moved immediately.
Flow-through Cross docking In this type of cross docking, there was a constant inflow and outflow of goods from the distribution center. This type of cross docking was mostly suitable for perishable goods, which had a very short time span, or goods that were difficult to be stored in the warehouses. This cross docking system wamostly followed by the supermarkets and other retail discount stores, especially for perishable items.
CopDistributor Cross docking In this type of cross docking, the manufacturer delivered the goods directly to the retailer. No intermediaries were involved in this process. This enabled the retailer to save a major portion of the costs in the form of storage. As the retailer did not need to maintain a distribution center for storing various kinds of goods, he helped him save warehouse costs. The lead time for the delivery of goods from the manufacturer to the consumer was also drastically reduced. However, this method had some disadvantages too. The transportation costs for both the manufacturer and the retailer tended to increase over a period of time, when the goods were required to be transported to different locations several times. Moreover, the transportation system had to be very fast. Otherwise, the very purpose of cross docking was lost. The transportation system should also be highly responsive and take the responsibility for the delays in delivery of the goods. The retailer was at a greater risk. He lost the advantages of sharing the risks with the manufacturer. This type of cross docking was suitable only for those retailers who had a large distributiohad to be delivered in a short span of time.
Manufacturing Cross docking In Manufacturing cross docking, these cross docking facilities served the factories and acted as temporary and “mini warehouses.” Whenever a manufacturing company required some parts or materials for manufacturing a particular product, it was delivered by the supplier in small lots within a very short span of time, jucosts substantially.
Pre-Allocated Cross Docking Pre-allocated cross docking is very much like the usual cross-docking, except that in this type of cross docking, the goods are already packed and labeled by the manufacturer and it is ready for shipment to the distribution center from where it is sent to the store. The goods can be delivered by the distribution center directly to the store without opening the pack of the manufacturer and re-packing the goods. The store can then deliver the goods directly to the consumer without any further re-packing. Goods received by the distribution center or the store are directly sent into the outbound shipping truck, to be delivered to the consumer, without altering the package of the good. Cross docking requires very close co-ordination and co-operation of the manufacturers, warehouse personnel and the stores personnel. Goods can be easily and quickly delivered only when accurate information is available readily. The information can be managed Interchange (EDI) and other general sales information.