A Recent Report about a Popular Practice July 8, 2008
Posted by Meg Sewell in Actionable Intelligence.Tags: cross docking, lean manufacturing, logistics
trackback
Image Source: http://pro.corbis.com
It seems that cross-docking—the process of unloading materials from an incoming semi truck or rail car and then loading the same materials into outbound trailers or rail cars with little or no storage in between—is becoming quite popular.
A recent survey by Third-Party logistics provider (3PL) Saddle Creek Corp. found that of the distribution professionals polled, 52% are currently crossdocking and 13% plan to begin crossdocking in the next two years. Among the benefits from cross-docking identified, most respondents chose “improved service levels” (as in, products reaching destinations more quickly, thereby ensuring the products end up on the shelves by the time they’re needed) as the biggest benefit and reduced transportation cost as the second biggest benefit.
In response to the challenges of cross-docking, unpredictable customer demand (customer wanting to delay a shipment and there being no storage space for it) was identified as the biggest challenge, and the lack of IT systems needed to support the practice as the second biggest problem.
What is your opinion? Is cross-docking a smart move or problematic strategy?
