четверг, 27 августа 2015 г.

Cross-Docking - The requirement for Speed

In today's high velocity supply chain world, companies are increasingly concentrating on distribution methods which will drive efficiency and increase client satisfaction. The days are gone where customer service was just a buzz word. With the give attention to customer support, companies have moved away for your supply driven business towards a demand driven business. Companies may also be constantly searching for methods to reduce inventory and holding cost. The rise in speed has forced companies to seek out strategies to reduce product cycle efforts and move product quickly and cost effectively.

Throughout the years, companies have noticed a dramatic increase in how many stock keeping units (SKU). The increase in how many SKUs has added complexity for the business and has increased the cost and time needed to manage this business. Department heads face additional pressure since they are instructed to stock shelves with all the right products and make sure that customer demand is met all times. In today's high speed world, shipping windows are changing rapidly, as retail clients demand increased speed in order to meet store requirements. To obtain these goals, cross-docking is pushed on the frontline with the distribution strategy.

Precisely what is cross-docking?

Cross-docking (C-D) is a system that depends on speed and agility and is normally found in hub-and-spoke operations. In other words, may be the shipment and receiving of goods by bypassing the storage facility. In the process of getting rid of the requirement for a storage facility, inventory can move quickly from one end with the supply chain into the other. This is a fairly simplistic means of handling inventory that involves loading and unloading inventory from an incoming truck onto an outboard truck. During cross-docking storage time varies. However, many experts would agree that anything fewer than two days can be regarded as as cross-docking. Occasionally staging also transpires.

For all of the simplicity, c-d requires detailed planning and collaboration with partners. Companies require advance expertise in product shipment and final destination of goods. Starting the required infrastructure and systems may take efforts and capital. Logistic managers are increasingly employing technology such as Warehouse Management Systems (WMS) and automated processes. It is important to realize that technology is simply not the key to success. However, the best system can smooth out problems and increase visibility during the chain. Companies now be capable of send products with a Friday night, receive them on Saturday, and then sell on the products later from the day.

How can it be used?

C-d is utilized in many different strategies that come with consolidating a lot of less-that-truck load (LTL) carriers, consolidate loads from multiple suppliers and plants, deconsolidating orders, and preparing for shipping. It is usually split into different complexity levels including one-touch, two-touch and multiple-touch. One-touch is considered the highest productivity as merchandise is not loaded around the dock, but is loaded directly on the truck. During two-touch the focus is on load optimization and driving efficiencies. Inventory is received and staged in the dock, without working with a storage facility. During multiple-touch, appliances are received and staged for reconfiguration and customization.

An increasing number of companies are starting to work with Dallas TX Fulfillment Center with their operations. Inside a 2008 cross-docking trends report in the united states, 52 percent of respondents stated that make use of cross-docking which has a further 13 percent planning to start cross-docking over the following 24 months. Several companies are outsourcing cross-docking. In that way, they stop the challenges of setting operational their unique operation. Many businesses begin small and pilot projects are standard when they explore the configuration that best fits their needs. For cross-docking to succeed it must be a coordinated effort that will depend on close partnership and collaboration.

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