When looking at distribution and warehousing the most common areas we can gain valuable improvements are...
I will explore cross-docking – a very important area to focus on for any warehouse and distribution professional looking to drive a point of difference.
Often I hear varying definitions and ideas thrown around of what it means to run a high standard cross-dock process. The process is often misunderstood and poorly executed on all levels of operations, so I’ll take you through what it means to run true best practice cross-docking and the relevant considerations.
Best practice cross-docking is the process of receiving products and then dispatching that product, same day without putting it into storage... Sounds simple right?
Since handling, picking and putting away takes up a large piece of the operational cost pie, the attraction by companies to implement a cross-docking process to reduce costs is obvious. With less product being put away, warehouse space is freed up and can be utilised for other activities. Even a permanent reduction in warehousing space, could be considered once a robust cross-docking process has been proven. The number one challenge I hear from warehouse and distribution center (DC) managers revolves around customer focus and growing expectations. A good cross-dock operation is proven to improve customer responsiveness and speed of service.
There are many important considerations when assessing the viability of the process including:
There is also a financial risk involved if the process isn’t executed as planned causing hold-ups with trailers, transport and warehouse labour.
I have recently transitioned from a role as a Distribution Manager, which I held at a large distribution centre for a market leading national beverage company, to a consultant recruiting within the supply chain space. Something that has surprised me is there are a very small percentage of products, in reality, that are actually being cross-docked.
I have found over the last six months that the majority of talent that I meet with warehouse and DC manager titles only cross-dock in their organisation in some capacity. It has become increasingly apparent the process of cross-docking is misinterpreted and under-utilised in Australia resulting in huge cost implications.
So with all that in mind the top considerations to run a best practice cross-dock operation are:
As you can see there is a certain complexity to best practice cross-docking that requires a company to invest in process, systems, facilities and people, but if the company is willing to invest, the journey to best practice cross-docking can be a highly beneficial way to differentiate your operation from your competitors.