5 Lessons Learned: Businesses

by Dwi

Cross Docking

A broad definition for the term cross moorage is the activity where goods and materials are directly distributed from inbound carriers such as trailer trucks to outbound carriers without actually involving any handling or storage in between the two transactions. The name technically describes the process, where the shipping goes directly across to the outbound transporters hence the label cross dockage. Cross docking is a key supply chain and logistics practice that promotes smooth, coordinated and high flow transfer of information and materials from producers to consumers. Food businesses and dealers in fragile commodities normally require quick action on their products hence cross moorage is very reliable to such businesses. For starters, cross moorage provides the benefit of reduced expenses from the reduced risks of handling and storage of resources and products and reducing the costs of labor, space and cover. Another advantage is the quick movement in and out of the docks which means that transportation has fuller shipments reducing the trips. Hence, cross dockage saves time, is environmentally friendly and reduces transportation costs. The process of cross dockage also provides a central site for sorting products, breaking down large products into small loads and combining numerous smaller products. Cross moorage in its purest form usually involves no storage not withholding the fact that it exists in many other different forms. Cross docking is practiced in a variety of industries like parcel delivery, grocery industries, various automotive industries and a variety of manufacturing industries. Cross docking suits businesses that handle fragile goods or temperature controlled items such as food which need to be relocated as quickly as possible. Cross docking requires cooperation among members of the supply chain and trading partners. For efficient synchrony of transport and supply chain systems Information technology needs to be part of cross moorage. Majorly due to the fact that cross moorage involves a number of items, it should be monitored and programmed cautiously. Cross docking’s main activity is the foretelling of the inbound transport of materials which helps in preparation of space and other required resources. Supply chain productivity can be implemented with the help of cross docking.

To complete the outbound load before shipping, inbound materials are sorted with onsite materials and both are combined. During sorting an preparation of material before onsite and inbound are mixed, they are organized in racks for faster retrieval when required. This majorly keeps back handling and transport costs and provides flexibility in the supply chain. In most trades, cross docking creates a suitable environment for reliability in the logistics network. Cross moorage is a major logistics networks activity that upholds effortless, in line movement and conveyance of goods and information between suppliers and clients.

Resource: this website