Everybody’s doing it… June 25, 2008
Posted by Meg Sewell in Actionable Intelligence.Tags: cross docking, just-in-time inventory, lean manufacturing
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Image Source: http://irps.ucsd.edu
Although it’s a not-so-new concept that was once thought of as a big hassle, cross-docking is making its way back into the forefront. With increasing fuel costs and a heavy reliance on just-in-time inventory, many companies are implementing this technique as a way to keep their businesses afloat.
In a recent article I found, an anonymous online survey found that 52 percents of 547 respondents reported that they were currently cross-docking, and 28 percent said they’d been implementing cross-docking for more than 10 years. 32 percent said they’d just started cross-docking in the last three years.
How do you know if you’re a good candidate for cross docking? According to the article, “cross docking makes the most sense for shippers whose existing order cycles and distribution methods aren’t equal to customer requirements; when existing distribution extends cycle times and increases obsolescence; when inefficient distribution creates inefficiencies in production; when lengthening supply chains make on-time performance prohibitively expensive; or when distribution costs exceed sales growth.”
What about you? Has your company recently implemented cross-docking, used cross-docking all along, or never even considered it?
