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Cross Docking: What are the facility layout considerations?

January 25, 2008

This is the third in a series of articles on cross docking

Cross dock facility rendering

If you started from scratch, many might simply build a cross dock facility with a much shallower depth than most warehouses. A depth of a hundred feet or so, with incoming product on one side that can be easily moved a short distance and loaded on the other side to an outbound truck. Most of us however, must deal with an existing facility, many times a large square box which is not generally the preferred layout. However, as long as the existing facility has a sufficient quantity of dock doors, yard space, and an adequate footprint, you may be fine.

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This article is part of a series of articles on Cross Docking. Click on a link below to view one of the other articles.
  1. Cross Docking: Is it Right For Me?
  2. Am I Wasting Time: is Cross-Docking a Viable Consideration for my Company?
  3. Cross Docking: What are the facility layout considerations?
  4. Cross Docking: A retailer improves supply chain

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Along with the cost of a gallon of gas, your transportation costs are rising (but fuel isn’t the only reason)

November 14, 2007

It’s more immediate of course, when the cost at the pump jumps, but rising fuel costs are a reality in your shipping operations whether you are pushing product to customers or bringing it into your facility. We’ve all seen the fuel surcharges and continually-rising freight rates.

According to Operations & Fulfillment, labor developments may have just as much impact over the next few years. Over the next 5 years, the latest UPS contract amounts to a $9 per hour labor cost increase, which will certainly make its way downstream to shipping charges. Developments in other companies such as FedEx and labor negotiations across the shipping and freight world mean that even if fuel prices stabilize, it’ll cost you more to ship and receive products.

Curt Barry’s article at Operations & Fulfillment recommends some of the steps you can take:

  1. Look at transportation in the context of the total supply chain efficiency. (see Curt’s article for tips).
  2. Institute vendor compliance policies, include routing guides for inbound carriers. Do not permit vendor-controlled freight.
  3. For high returns businesses, use return services.
  4. Join an inbound freight consortium with contracted carriers and negotiated best rates.
  5. Do your homework. You have to understand your volume and shipping characteristics, etc.
  6. Consider a freight consultant, which can reduce costs 15% to 25%.

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