Cross docking is a distribution system in which the merchandise is received at the warehouse or distribution center without the store again but immediately prepared for onward delivery. In other words, cross docking is emindahan process of direct entry point to the delivery point without being stored again for a while.
Two types of cross docking for example as follows.
a. Pre-Packed Cross Docking: Packaging (eg pallets, crates, etc.) selected by the supplier based on orders from the store, received and taken to outbound docks to be combined with the same packaging from other suppliers to be loaded into a delivery vehicle to the store without handling process more further.
b. Intermediate Handling Cross Docking: Packaging (pallet, crate, etc.) are accepted, then opened later labeled back into new packaging by the distribution center to be sent back to the store. The new packaging is then sent to the outbound dock to be combined with similar packaging from suppliers other in a delivery vehicle.
Selection of the type of method used depends on the following below:
1. Type of product (for example: fresh products, dry food, etc.).
2. The distribution model used by retailers.
3. The volume of products delivered by the supplier and mileage in order to combine it with another.
4. The critical point of delivery.
5. Expenses incurred in the implementation of the selected distribution type.
The purpose of cross docking is to eliminate unproductive storage at the distribution center retailer or wholesaler. The gain from the loss of the cost and time it takes to move a product into or out of the location of the warehouse, including data entry that is linked to the inventory management information system.
By using cross-docking, all participants involved in the supply chain benefit from some of the following:
- The decline occurred.
- Distribution costs.
- Required physical area, where the distribution center serves only as a stopover point for the distribution of goods.
- Shortages at retail stores.
- The number of storage locations throughout the supply chain.
- The hassle of in-store delivery.
- Enhancement.
- The value of each meter of land in the distribution center.
- Limit expired product / sell longer period.
- The existence of the product.
- Smoothness.
- The flow of goods.
- To reduce.
- Inventory levels.
- Receiving orders already merged rather than accept orders from individual retail stores.
The shop no longer do the preparation of the products in the warehouse distributor, but is done by the supplier at the time of preparation before the goods are shipped. This process allows the supplier to send to a single point cut poultry in order to increase the level of freshness of the product.
However, this process can also be used for slow moving product for delivery to the store with medium size small outlets such as supermarkets or self-service. Cross docking is generally appropriate for the type of product that has a small volume with a few number of articles, such as cosmetics, hygiene products, sundry goods, apparel etc.
In order to optimize the use of resources conveyance / transport, several suppliers in the same supply chain can establish a group to combine their logistics shipment.
Intermediate Handling Cross Docking
Distribution center issued a joint order without any details of toko.Unit logistics or distribution is determined by the distributor of the purchaser in accordance with the needs of the store. Supplier prepare and send the products to the distribution center. At the reception, the packaging is reduced to a homogeneous distribution unit to be immediately sent to the store.
Basic Elements for Cross Docking
a. Senior Engagement Management
The involvement of top managers is necessary in the cross docking. Senior management of the two companies is a primary must agree a common distribution strategy for the product or group of products involved in the project cross docking.
Cross docking is not a total functional project, even though the information system, logistics and sales departments involved in the process. Another main issue to consider when implementing / cross docking arrangements.
1. Delivery time
Vehicles that send goods to a distribution center requires careful coordination. In particular the timetable and booking system that will be approved by the supplier, thus the vehicle arrival time is set turns on weekdays. The further development firms currently using a system such as a global positioning satellite to arrange a convoy of vehicles, and to track the vehicle in accordance schedule.
2. Limited Space
Space for trans-shipment or cross docking in the Distribution Center is often limited. Signifi cantly consideration should be given to setting solid time moment where the use of existing space and the bay door is under high pressure.
3. Mechanical Handling Equipment (MHE)
The number and type of MHE at the distribution center will often determine how quickly and effi siennya cargo vehicles can be processed.
4. Human Resources
Delivery scheduling, limited space, and the availability of MHE all will affect the number of people required to perform the functions of cross docking warehouse.
The level of flexibility is always necessary in this process, as well as the factors involved will always unpredictable at a time, for example to avoid delays on vehicles, damaged, theft, IT system down at the time etc. Business and Marketing