This article is the first in a series of articles on the subject of cross docking.
Judging by the number of inquiries we receive relative to inventory management in distribution, a look at cross docking practices seems to make sense. This will be the first of a series of briefs on cross docking, how and where it works, and a look at some best practice ideas that might be useful to those of you in the distribution business (of all sizes). I’ll also be providing you links to some excellent online references for more information.
Most everyone is familiar with how those like Wal-Mart took the cross docking model, and essentially redefined supply chain efficiency. The results achieved are well-documented. For those of us involved with mid-size organizations, a compelling case can be made for considering cross dock principles in our distribution centers. If you are able to move material from receiving dock to shipping dock, and bypass storage, consider what you gain. Costs associated with holding inventory, protecting it, insuring it, picking it, counting it, and so forth.
Although the “cross docking” term is well ingrained in our supply chain lingo, it is important to understand the concept also applies elsewhere in our distribution centers (more on that later), notwithstanding what you call it. Let’s begin.
Read the rest of this entry »