Cross Dock Article Index for
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Information About

Cross Dock




In purest form this is done directly, with minimal or no Warehousing . In practice many "cross-docking" operations require large staging areas where inbound materials are sorted, consolidated, and stored until the outbound shipment is complete and ready to ship. If the staging takes hours or a day the operation is usually referred to as a "cross-dock" distribution center. If it takes several days or even weeks the operation is usually considered a warehouse.

Crossdocking is used to decrease inventory storage by streamlining the flow between the supplier and the manufacturer.


TYPICAL APPLICATIONS

  • " Hub And Spoke " arrangements, where materials are brought in to one central location and then sorted for delivery to a variety of destinations

  • Consolidation arrangements, where a variety of smaller shipments are combined into one larger shipment for economy of transport

  • Deconsolidation arrangements, where large shipments (e.g. railcar lots) are broken down into smaller lots for ease of delivery.



FACTORS INFLUENCING THE USE OF CROSS-DOCKS

  • Customer and supplier geography -- particularly when a single corporate customer has many multiple branches or using points

  • Freight costs for the commodities being transported

  • Cost of inventory in transit

  • Complexity of loads

  • Handling methods

  • Logistics software integration between supplier(s), vendor, and shipper

  • Tracking of inventory in transit



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