Cross docking is the process used to take a finished good from the manufacturing plant and deliver it directly to the customer with little or no handling in between. Cross docking reduces handling and storage of inventory, allowing you our client, to save money!
Simply, stated cross-docking, means receiving goods at one door and shipping out through the other door almost immediately without putting them in storage .
Cross docking shifts the focus from "supply chain" to "demand chain". For example stock coming into cross docking center has already been pre-allocated against a replenishment order generated by a retailer in the supply chain.
Cross docking helps retailers streamline the supply chain from point of origin to point of sale.
It serves number of objectives. It helps reduce operating costs, increase throughput, reduces inventory levels, and helps in increase of sales space.
Cross docking helps reduce direct cost associated with excess inventory by eliminating unnecessary handling and storage of product. Less inventory means less space and equipment required for handling and storing the products. This also means reduced product damages and product obsolescence.
Cross docking also encourages electronic communications between retailers and their suppliers thus creating further opportunities for gains in efficiency.
When inventory is received, workers put pallets in lanes corresponding to the receiving doors, a second team or workers sorts pallets into shipping lanes, from which a final team loads them into outbound trailers.
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