Cross Docking
• Cross docking is the movement of materials from the receiving docks directly to the shipping dock
• Goods do not need to be placed in storage, creating a significant cost savings in inventory and material handling
The advantages of cross docking1. Helps to improve the speed of flow of the products
2. Reduces direct cost associated with excess inventory 3. Helps to reduce the amount of finished goods inventory that is required to be maintained as safety stock
The disadvantages of cross docking
1. Is appropriate for appropriate for products with large predictable demands
2.Requires a great degree of coordination and synchronization between the incoming and outgoing shipments which , in turn relies on better information and planning
Problems- No coordination for a long time. - Malaysia controls the transport of only one owner.