Cross-docking
Cross-docking
Logistics consists of several phases before delivering an item to its final destination. During these phases of packing, unloading and delivery, speed is vital. Not just speed, but even the amount of items delivered in a time is essential.
In simple words, every process should be as efficient as possible to receive the best output. Cross-docking is one of the strategies through which firms can increase efficiency in handling products and improve their overall shipping process. Let’s take a gander at what cross-docking is today.
What is Cross-docking?
Cross-docking is a type of strategy which smoothens operations of complex supply chains. At its core, cross-docking is a simple process where goods from a manufacturer’s plant are delivered directly to their customer or the supply chain with near to no time spent to store the goods in a warehouse.
It takes the ‘storing’ part out of a supply chain. The way it works is by unloading goods from a delivery truck (or even railroad carts), sorting them accordingly, and then restocking them to another outbound vehicle to continue the process.
This occurs in a cross-docking terminal where products are distributed from the inbound to outbound vehicles. Once the process has been completed and the necessary goods have been placed in the outbound transport vehicle, delivery can be made directly to the customers.
Types of cross-docking
There are two main types of cross-docking; pre-distribution and post-distribution.
Pre-distribution will cover the steps before the goods are forwarded for distribution. These include unloading the products from the inbound vehicle, screening and sorting the products, and restocking according to pre-set instructions for distribution.
By the time all items can arrive at the outbound vehicle, all customers are identified. Once the pre-distribution phase is complete, further sorting of the products is put on hold until the accurate customers and type of service are chosen. This relies heavily on demand.
Until all decisions are made, the goods remain at the cross-docking terminal. It may sound ironic since the whole idea of cross-docking is to save up on time.
However, the extra time lets retailers analyse and make proper decisions on where and when they want their goods delivered. There are also other types of cross-docking, namely; Hybrid and Opportunistic cross-docking.
How to implement cross-docking?
Implementing cross-docking for your business may not be the most manageable task to undertake. However, it’s not impossible either. Take note of 6 requirements to implement cross-docking successfully:
- Collaboration with others in a supply chain.
- Confidence in the availability and quality of products.
- Good relations and communications with members of a supply chain.
- Firm control over cross-docking operations.
- Keeping necessary equipment, personnel and service at the ready.
- Strategic management.
Challenges faced while cross-docking and how to overcome them
Cross-docking may be a decent strategy to make logistics more efficient; however, like everything, it comes with its challenges. We’ve listed some of them to give you a better outlook on them before you start cross-docking yourself.
1) Package Mismanagement:
Cross-docking consists of moving vast amounts of goods. It’s pretty easy for products to get lost or misplaced if there’s a lack of management amongst unloaders.
You could have a situation where a specific product might not have arrived in the quantity your clients need. However, workers may overlook or forget about them and add them to the outbound vehicles anyway due to bad management.
This is where you should consider a scanner that can display all results on a screen. Products that are missing or in excess can be recorded immediately, preventing miscommunications with the customers.
2) Unsuitable Terminal
The process of cross-docking needs to happen all at once. You may find a dock that can only support a few trucks at a time. This can significantly increase the time needed to complete the entire offloading and onloading process.
To counter/prevent this, ensure to get a well-designed facility for cross-docking and hold enough space for you to conduct your business operations.
Conclusion
To wrap it up, cross-docking is a decent way for firms to enhance their shipping process. If you learn about cross-docking before implementing it, there’s a good chance you’ll profit right from the get-go!
