referred to as "crossdock loads." This As mentioned in Section 1.0, one of the means that the mixed unit loads are not going first steps in defining a crossdocking strategy to be shipped from the distribution centers to the customer but rather from the distnbution is to define the appropriate crossdocking meth odology. Concument with defining the appro centers to a mixing terminal where the two priate crossdocking methodology is the portions of the order will be receive comi definition of a crossdocking strategy.The three bined, and shipped together to the customer. The potential benefits to be achieved via crossdocking strategies are crossdocking are very significant. The proper 1. Unsorted/Unlabeled Crossdocking application of crossdocking can be very in 2. Unsorted/Labeled Crossdocking strumental in achieving continuous flow dis 3. Sorted/Labeled Crossdocking tribution. Let's all use the same terms so that we can properly understand the opportunity any of the three crossdocking methodologies. Each of these three strategies can apply to being addressed Inbound product can be either sorted or unsorted. The benefit to presorting the mer chandise is that the handling required by the receiving party is reduced. Itdoes require that the shipper incur additional labor to sort the Terminal product, but this additional labor is usually less than the labor that would have been re- Receiving quired to sort the product in the customer's Figure 1.3: Terminal Crossdocking warehouse Inbound product can also be labeled or STRATEGIES CROSSDOCKING 2.0 unlabeled. Once again, the pre-labeling of Crossdocking strategies refer to how product will speed up the receiving process in the customer's warehouse. The shipper will crossdocking will work between two trading incur additional labor to bar code and iden Cross docking in the '90s Page 3
Tompkins Associates tify all outbound cartons and unit loads. This cases, if the vendor is pre-sorting and pre-la- procedure should also result in a net savings beling the product, the product is never re ceived at the customer Distribution Center for the two trading partner The first strategy is unsorted/unlabeled (DC). Instead the merchandise is shipped di cross docking. In an unsorted/unlabeled rectly to the store. In other cases, the mer crossdocking operation, the inbound merchan chandise is sent to a third party or pool dise does not have a final ship-to destination distributor. In either case the merchandise label and the product has not been presorted has already been picked and identified by the by the shipping partner. The manufacturer or vendor and, as a result, the receiving process wholesaler distributor picks the merchandise is streamlined for shipment and builds the shipping loads based on the most economic and efficient 3.0 CROSS DOCKING methods for the shipper. When the product is REQUIREMENTS received, the customer must break down the The key to any crossdocking operation loads, sort the product, label the product for the final store destination and reload the truck. is the information systems that will support The second strategy is unsorted/labeled the crossdocking operations. These informa tion systems will need to utilize automatic cross docking. In this strategy, the vendor la bels all inbound merchandise with an out identification technologies and Electronic bound store label. When the customer receives Data Interchange (EDI transmissions. Sec the merchandise, it has already been identi ondary requirements will include space and fied. The customer can place the goods on a storage and material handling equipment. conveyor system and let the conveyor system And, of course, changes to the operational ort the product. If the product is not placed procedures will have to occur so that on a conveyor, the product is directed to the crossdocking can be supported. The follo taging location and is manually placed in that ing subsections describe each of these require staging location. The customer is providing ment th e order consolidation of this inbound mer chandise with other merchandise that is await- 3.1 INFORMATION SYS TEMs REQUIREMENTS ing shipment The final crossdocking strategy is sorted/ A successful crossdocking strategy re labeled crossdocking. Inbound product is la quires that a company have asuccessful ware beled by the vendor and the vendor has per formed a pre-sort of the merchandise to build house information systems strategy. The logical loads. The customer is then going to driver behind developing a warehouse infor cross dock the entire unit load upon receipt mation systems strategy is the need for qual ity information with zero information lead The vendor has essentially picked its Stock Keeping Units (SKUs) for the order. In some times. In short, what a warehouse informa Cross docking in the '90s Page
Tompkins Associates tify all outbound cartons and unit loads. This cases, if the vendor is pre-sorting and pre-la- procedure should also result in a net savings beling the product, the product is never re ceived at the customer Distribution Center for the two trading partner The first strategy is unsorted/unlabeled (DC). Instead the merchandise is shipped di cross docking. In an unsorted/unlabeled rectly to the store. In other cases, the mer crossdocking operation, the inbound merchan chandise is sent to a third party or pool dise does not have a final ship-to destination distributor. In either case the merchandise label and the product has not been presorted has already been picked and identified by the by the shipping partner. The manufacturer or vendor and, as a result, the receiving process wholesaler distributor picks the merchandise is streamlined for shipment and builds the shipping loads based on the most economic and efficient 3.0 CROSS DOCKING methods for the shipper. When the product is REQUIREMENTS received, the customer must break down the The key to any crossdocking operation loads, sort the product, label the product for the final store destination and reload the truck. is the information systems that will support The second strategy is unsorted/labeled the crossdocking operations. These informa tion systems will need to utilize automatic cross docking. In this strategy, the vendor la bels all inbound merchandise with an out identification technologies and Electronic bound store label. When the customer receives Data Interchange (EDI transmissions. Sec the merchandise, it has already been identi ondary requirements will include space and fied. The customer can place the goods on a storage and material handling equipment. conveyor system and let the conveyor system And, of course, changes to the operational ort the product. If the product is not placed procedures will have to occur so that on a conveyor, the product is directed to the crossdocking can be supported. The follo taging location and is manually placed in that ing subsections describe each of these require staging location. The customer is providing ment th e order consolidation of this inbound mer chandise with other merchandise that is await- 3.1 INFORMATION SYS TEMs REQUIREMENTS ing shipment The final crossdocking strategy is sorted/ A successful crossdocking strategy re labeled crossdocking. Inbound product is la quires that a company have asuccessful ware beled by the vendor and the vendor has per formed a pre-sort of the merchandise to build house information systems strategy. The logical loads. The customer is then going to driver behind developing a warehouse infor cross dock the entire unit load upon receipt mation systems strategy is the need for qual ity information with zero information lead The vendor has essentially picked its Stock Keeping Units (SKUs) for the order. In some times. In short, what a warehouse informa Cross docking in the '90s Page
Tompkins Associates tify all outbound cartons and unit loads. This cases, if the vendor is pre-sorting and pre-la- procedure should also result in a net savings beling the product, the product is never re ceived at the customer Distribution Center for the two trading partner The first strategy is unsorted/unlabeled (DC). Instead the merchandise is shipped di cross docking. In an unsorted/unlabeled rectly to the store. In other cases, the mer crossdocking operation, the inbound merchan chandise is sent to a third party or pool dise does not have a final ship-to destination distributor. In either case the merchandise label and the product has not been presorted has already been picked and identified by the by the shipping partner. The manufacturer or vendor and, as a result, the receiving process wholesaler distributor picks the merchandise is streamlined for shipment and builds the shipping loads based on the most economic and efficient 3.0 CROSS DOCKING methods for the shipper. When the product is REQUIREMENTS received, the customer must break down the The key to any crossdocking operation loads, sort the product, label the product for the final store destination and reload the truck. is the information systems that will support The second strategy is unsorted/labeled the crossdocking operations. These informa tion systems will need to utilize automatic cross docking. In this strategy, the vendor la bels all inbound merchandise with an out identification technologies and Electronic bound store label. When the customer receives Data Interchange (EDI transmissions. Sec the merchandise, it has already been identi ondary requirements will include space and fied. The customer can place the goods on a storage and material handling equipment. conveyor system and let the conveyor system And, of course, changes to the operational ort the product. If the product is not placed procedures will have to occur so that on a conveyor, the product is directed to the crossdocking can be supported. The follo taging location and is manually placed in that ing subsections describe each of these require staging location. The customer is providing me