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
