Cross Docking

The goal of most warehouses is to increase throughput rates and reduce the amount of stock held. Cross docking is a process where products are moved directly from goods-in to the dispatch bays. This avoids the need to place the product into store and any subsequent picking operation. Cross docking needs the full support of suppliers as to how they present the product. This includes clear labeling and advance notice of arrival together with accurate, on-time delivery. Cross docking requires systems to identify the product that needs to be cross docked and a process needs to be in place to recognize and prompt the transfer.

Once checked in, the products should be taken directly to the dispatch area and their floor or temporary rack location recorded on the system, alerting staff that the product is now awaiting dispatch. The details must be recorded in order to provide an audit trail. Other points to take into account include the amount of space available at the inbound and outbound areas. Sufficient space is the key to moving products quickly and safely. Any congestion in these areas will slow up the process appreciably and lead to tension between teams. There also needs to be a well-marked staging area where the products can be placed prior to dispatch. An area of drive-in racking can assist in marshalling loads for particular collections.

Cross docking is used significantly in the movement of perishable goods through the supply chain. Retailers use this system in their distribution centres where they receive products from multiple suppliers and sort and consolidate them for onward shipment to different stores. Just-in-time systems also rely on cross docking whereby manufacturers deliver parts to a cross-dock centre where they are consolidated and delivered line-side in sequence.

Figure 3.6: Example of Cross Docking