RP2 Kyle Duran Explain Cross Docking
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Central Texas College *
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Industrial Engineering
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Nov 24, 2024
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Running head: CROSS DOCKING
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Explain Cross Docking
Kyle Duran
Central Texas College
CROSS DOCKING
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Abstract
A lot of research has previously been done concerning logistics and the numerous concepts that
are involved in it. However, not all areas that concern logistics have been thoroughly researched
and studied. Among them is the concept of cross docking; it is a very essential technique that
must be upheld since it has many advantages for those working in the logistics and supply chain
field.
Therefore, this research paper will describe the various techniques, methods, concepts, and
even models that are often utilized in the cross-docking area of logistics.
Keywords:
Cross Docking, Logistics
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Explain Cross Docking
Cross docking is defined as the act of offloading goods and products that have been
transported from one destination to another and then simultaneously offloading the goods onto
other trucks. It is a concept that involves not just the shipment and transportation of goods, but
also their removal from the inbound to the outbound vehicles. It is employed by very many
industrial companies for its various advantages. Therefore, cross docking is a distribution
strategy that is commonly used to efficiently transport goods from the suppliers to their
respective consumers. Other distribution strategies that are often employed include direct
shipment, warehousing and milk-runs.
Advantages of Cross Docking
The process of distribution of goods to consumers from the suppliers’ accounts for
approximately 30% of product sale costs in logistics companies (Benrqya, 2019). This aspect
generally increases the expenses of the logistics and supply chain companies making it a
negative impact especially on the suppliers and the manufacturers. This brings out the need to
reduce costs of distribution and to make the process more efficient in these companies, hence the
need for cross docking. Cross docking not only overcomes the very high distribution costs but
also makes the process easier for the suppliers.
Moreover, cross docking also helps to overcome the high demands that come with the
storage and handling of goods before they are distributed to the consumers. This occurs since the
goods are consolidated from various original locations to different cross-dock locations whereby
they are immediately offloaded and then loaded with other goods that share a similar destination.
In addition to the costs being reduced, the truck capacity usage is also maximally utilized since
shipments of all sizes are loaded onto the same truck headed in one direction.
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Cross docking also reduces the amount of money spent on warehousing, handling of
goods, labor, inventory-holding, and transportation (Benrqya, 2019). This is because a large
amount of money is originally spent when the goods are offloaded and then stored for some time
before being transported to the rightful consumers. Laborers also must be paid for offloading the
goods, setting them up in warehouses and loading them later in different trucks. Therefore, in
cross docking, the costs for the many laborers, warehouses, storage and handling of goods are
considerably reduced.
Nevertheless, the amount of time it takes for the goods to be transported to the consumers
is greatly reduced when cross docking is used. This is because there is no storage time anymore
since goods are loaded onto other transportation trucks immediately after they get to the docking
locations (Khorasani, S. T., Keshtzari, M., Islam, M. S., Feizi, R., 2018). Cross docking is
extremely effective for transporting many goods in a short amount of time (Khorasani et al.,
2018). Therefore, the consumers will not be inconvenienced by late deliveries or risks of their
goods coming at different times since all goods of similar locations are transported together.
Cross docking also reduces the risk of damage to the goods by immediately delivering them
without delay.
Cross docking optimizes the use of various resources and reduces overstocking. This is
simply because all available trucks are optimally used for transport of goods according to the
destinations. Control over the delivery times and schedules are also a great advantage of cross
docking; this occurs because there is no time wasting between the time of offloading and loading
the goods onto other trucks (Álvarez-Pérez, González-Velarde & Fowler, 2017). Generally, the
rate of flow of inventories is uplifted together with the sales turnover.
Applications of Cross Docking
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Cross docking can be applied in various companies and industries including the food
industries and retail (Benrqya, 2019). Its advantages make it a good distribution strategy in the
food industries since the risk of the products spoiling due to high amounts of storage time is
avoided. Therefore, the food products are delivered on time and this keeps them fresh and
healthy for consumption. The consumers are also ultimately pleased, and they engage more with
the food industries. In retail, cross docking has also been applied for example, in Walmart.
Walmart was the very first firm to propose the use of the cross-docking distribution strategy and
by using it; they were able to increase their profits and market shares. This made Walmart the
most profitable retail company in the whole world simply by applying the cross-docking
technique in 1992. Cross docking also enabled them to save approximately 3% of costs that they
previously used to spend. Some pharmaceutical companies also use cross docking to enhance
their delivery of pharmaceutical goods to the market (Benrqya, 2019).
Cross Docking Optimization Techniques
Numerous techniques can be employed to improve cross docking. One important
technique is mathematical optimization. It is a method used in making hard decisions and
reaching the best solutions for example, choosing good product sizes, and reducing the amount
of traffic when loading and unloading at dock locations. The mathematical techniques are useful
since product size is an important aspect of transport; huge products cannot be placed on the
smaller, more fragile ones since this will cause damage to these goods. The docking locations
should also be well calculated and all the activities happening in it properly arranged to avoid
congestion, traffic, and time wastage (Buijs, P., Danhof, H. W., Wortmann, J. C., 2016). Some
goods are perishable, and their value diminishes with time.
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Another vital technique is known as simulation. Simulation involves the mimicking of
actual-world operations, for example the development of a simulator for various events; this
simulator evaluates the amount of time it takes to offload and load the goods, the capacity needed
and the efficacy of transport. Various methods of simulation have been used including genetic
algorithms, simulated annealing, hybrid metaheuristics and Tabu search (Rachih, H., Mhada,
F.Z., Chiheb, R.,
2019). These methods can be applied independently or in combination. For
example, the use of genetic algorithms together with particle swarm optimization reduces the
costs of transportation and helps in decisions concerning delivery, time window and pickup.
Conclusion
In conclusion, this paper has been about cross docking, its definition, advantages,
applications, and optimization methods. Cross docking is simply the immediate loading of goods
onto trucks once they reach the docking locations to effectively transport them to the consumers'
destinations. It is an advantageous technique since it minimizes the amount of time spent storing
goods and with this, the validity of all goods, even foodstuff, is maintained. This method reduces
the amount of damage to the goods and enables the use of available resources to full capacity.
Cross docking also increases profits, reduces labor costs, and makes transportation easier. The
use of cross docking can be optimized by using mathematical optimization methods, and
simulation techniques.
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References
Álvarez-Pérez, G. A., González-Velarde, J. L., Fowler, J. W. (2017). Crossdocking—Just in time
scheduling: An alternative solution approach.
Benrqya, Y. (2019). Costs and benefits of using cross-docking in the retail supply chain: A case
study of an FMCG company.
Buijs, P., Danhof, H. W., Wortmann, J. C. (2016). Just-in-Time retail distribution: A systems
perspective on cross-docking.
Khorasani, S. T., Keshtzari, M., Islam, M. S., Feizi, R. (2018). Intravenous fluid delivery time
improvement: Application of cross-docking system.
Rachih, H., Mhada, F.Z., Chiheb, R. (2019). Meta-Heuristics for reverse logistics: A literature
review and perspectives.