The Impact Of Cross Docking On The Distribution System

1093 WordsApr 12, 20175 Pages
The role of cross docking is important to the distribution system it means avoiding placing materials or supplies in storage by processing them as they are received. In a manufacturing facility, product is received directly by the assembly line so In the distribution operation centre, labelled and pre-sorted loads arrive at the shipping dock for immediate rerouting, thereby avoiding formal receiving, stocking/storing, and order-selection activities because these activities add no value to the product, their elimination is 100% cost savings. Jay, H and Barry, R (2014). Cross docking is a logistics procedure where products from a supplier or manufacturing plant are distributed directly to a customer or retail chain with marginal to no…show more content…
(Hima, J & Behnam, V. 2014). Such a strategy can lead to a 70 % reduction in inventory holding costs. Therefore, cross docking can be viewed as a method of transportation in the distribution process that results in eliminating additional transportations and reducing material handling costs while increasing the customer service levels. Cross docking (CD), is a new strategy in logistics, which nowadays many companies use in many industries (Van Belle et al., 2012). A cross docking centre or cross docking terminal is a centre for distribution of goods. This type of distribution centre is entirely devoted for the transhipment and distribution of the truck and container loads. Although there may be some differences between cross docking centres and the traditional distribution centres, but the more highlighted one is that there is no storage or at least there is a significant reduction for storage (Kinnear, 1997). This difference is due to the main idea behind the creation of these centres, which is transferring the incoming shipments straight to the outgoing or outbound vehicles without any storage in between (Van Belle et al., 2012). Boysen (2010) provides a definition for cross docking which is: “receiving product from a supplier or manufacturer for several end destinations and consolidating this product with other suppliers’ product for common final delivery destinations”. Shipments consolidation is the focus

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