Cross docking distribution system

Cross docking is a distribution system where the merchandise is received at the warehouse or distribution center without being in the store again but immediately prepared for the next shipment. In other words, Cross Docking is the process of moving from point to point delivery receipts directly without being stored again for a while.

Two types of Cross Docking is covered in this article are as follows:

•  Pre-Packed Cross Docking: Packaging (eg, pallets, crates, etc.) selected by the supplier to order from the store, received and carried to outbound docks to be combined with the same package from another supplier to be loaded into a delivery vehicle to the store without further handling process .
•  Intermediate Handling Cross Docking: Packaging (Pallet, box, etc.) are accepted, then re-opened later labeled the new package into the distribution center to be sent back to the store. The new packaging is then sent to the outbound dock to be combined with a similar package from another supplier in the delivery vehicle.

The selection of the method used depends on the following things below:

•  Types of products (eg: fresh product, dried foods, etc.).
•  Distribution models used by retailers.
•  Volume of products delivered by the supplier and mileage in order to combine it with another.
•  Critical point of delivery.
•  Costs incurred in the implementation of the selected type of distribution.
•  Etc..

The purpose of Cross Docking is to eliminate unproductive storage at the distribution center retailer or wholesaler. The gain from the loss of cost and time required to move products into or out of warehouse locations, including associated data entry into the inventory management information systems.
By using Cross Docking, all participants involved in the supply chain benefit from the following points:
1. The decline occurred:

• The cost of distribution.
• Physical area is needed, where the distribution center serves only as a stopover point for the distribution of goods.
• Lack of stock in retail stores.
• The number of storage locations throughout the supply chain.
• The complexity of shipping in the shop.

2. Increased.

• The value of each meter of land within the distribution center.
• Limit the product expiration / sell a longer period.
• Availability of the product.

3. Smoothness.

• The flow of goods.

4. To reduce.

• The level of inventory.

5. And to:

• Have access to product data are available.
• Receive the merged order rather than accept orders from each retail store.