The Inovis Blog

Yesterday I wrote a post about the benefits of a lean supply chain. One big way to get that lean supply chain is through cross docking. So, how do you incorporate cross docking into your operations and what are the benefits? I found an excellent article that explains everything you need to know about cross docking. Here’s a quick summary.

Reaping the Benefits: Cross docking can be a very smart move for many companies. The first benefit mentioned in this article is the ability to accelerate speed to market. With just-in-time tactics, inventory is in one door and out the other. Inventory arrives and departs on demand.  On a similar note, because these products spend no time in storage, companies reduce storage requirements and in doing so eliminate inventory costs and storage-related labor costs. Last but not least, cross docking can help you grant customer’s specific wishes quickly. If you’re in a time crunch, cross docking is certainly the way to go!

How to get started:

Step 1: Select your products and suppliers. Not everything is going to be perfect for cross-docking, so it’s important to pick products that are well suited for this process. Here are some of the items on the checklist:

*Perishable products that require immediate shipment;
* High-quality items that do not require extensive quality checks during receipt;
* Products that are pre-tagged, pre-ticketed, and ready for sale;
* Items for promotional events and initial product launches
* Products with continuous, consistent demand, such as “staple” items like milk and toilet paper;
* Product moving from one retail store to another;
* Pre-picked, pre-packaged orders from another facility;
* Back-ordered items.

For suppliers, be sure to pick suppliers that can:

* Configure products for efficient handling through the next point in the supply chain;
* Consistently comply with customer mandates for labeling, ticketing, packaging, and product quality;
* Effectively and efficiently share information with their customers.

Step 2: Design and plan the operation. This starts with an assessment of your current operations. What do you already do and what are you capable of doing in the future? Certain things to consider during the design and plan stage include:

Dock-area layout and capacity.

Yard management.

Material handling equipment.

Personnel.

Information systems.

Step 3: Figure out costs and assess the return. For many companies, the start up costs may be steep, but is it worth it? If so, it’s important to communicate all of the benefits.

Step 4: The final step is implementation and maintenance. A well thought out plan leads to a smooth implementation. Once the implementation is complete, the job is not done. In fact, it’s never done. It’s important to always maintain this system and keep a close eye on it.