To shorten the delivery time, products from suppliers X, Y, and Z are combined as XYZ on a buyer basis without taking them into stock. It is a combination of initial stocking and handling processes.
Cross Docking types;
CML - Cross-Dock-Managed-Load
JML - Joint-Managed-Load
SML - Supplier-Managed-Load (closest to Just In Time (JIT))
The situations in which it is used;
Where demand is stable
In products where shelf life is important
Where buyers receive different products in a mixture
Benefits;
It shortens the time and distance of personnel and equipment required for product preparation.
Reduced product circulation distance minimizes the possibility of damage to the stock area.
Contributes to a reduction in stock volumes and shorter order response times, thanks to shorter make-to-delivery times
Reduces errors caused by rapid product preparation
Reduces the need for stock space required
Thanks to all these, it provides a cost advantage.
Points to be considered;
Arrangement of the distribution center as I, T, or X for this purpose (Ref: What Is Cross Docking?)
Use of appropriate software and labeling system
Organizing teams by this system
Difficulties;
Requires a more sophisticated organization than a standard distribution center
The difficulty of standardization in pallets
Graphical Representation of Cross Docking
Cross Docking Summary
References
Cross dock warehouse services have greatly simplified my logistics processes. By directly sending goods from one vehicle to another without the need for storage, I have been able to reduce delivery times and warehousing costs. This has increased efficiency and reduced overall costs. I have also appreciated the high speed of order processing, which has significantly improved our service to customers.