•On receiving the goods workers put them in lanes corresponding to the receiving doors.
•A second team of workers sort the goods into shipping lanes from which a final team loads them into outbound trailers.
Benefits of Cross Docking
•Helps to improve the speed of flow of the products from the supplier to the stores.
•Helps to reduce the cost as the labour is removed from the job of storage as well as by eliminating warehousing/storage.
•Helps to reduce the amount of finished goods inventory that is required to be maintained as safety stock.
Constraints of Cross Docking
•Requires a strong IT base and real time information sharing facilities e.g. Bar codes on cartons.
•Appropriate for products with large, and predictable demands.
•Requires that distribution centres should be set up such that the benefits of economies of scale in transportation can be achieved on both the inbound and outbound side.
•Requires a great degree of coordination and synchronization between the incoming and outgoing shipments which, in turn, relies on better information and planning.
•Product availability, accuracy and quality aspects are critical.
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